Pelion Benefits

What Pelion Benefits does

Pelion Benefits, Inc. is a privately held, Durham, North Carolina-based retirement plan administrator founded in 1984 that provides plan design, compliance testing, recordkeeping, investment advisory coordination, and participant support services to employer plan sponsors across governmental, tax-exempt, and for-profit segments. Its service portfolio spans 401(k), 401(a), 403(b), 457 Deferred Compensation, FICA Alternative (3121), VEBA, and HRA plans, with specialized expertise in governmental plan types such as the registered PRIME CHOICE® plan for converting special compensation into tax-advantaged medical or retirement benefits without violating IRS Constructive Receipt doctrine. The firm's two branded sub-products are Pelion Blue 401(k) Advantage — a 401(k) platform offering access to 7,000+ mutual funds, self-directed brokerage, independent investment advice, and automated administration — and Prime Choice®.

Underlying technology is delivered primarily through third-party platforms: Relius Administration by FIS powers daily valuation and the participant/sponsor web applications; Charles Schwab serves as the primary open-architecture custodian with self-directed brokerage; Morningstar provides fund performance data; and SmartPlan delivers online video enrollment. Pelion layers proprietary participant and plan-sponsor web portals, automated compliance testing across IRS Code sections 401(a)(4), 401(a)(26), 402(g), 404, 410(b), and 415, and 24-hour account access with same-day trade settlement (4:00 pm EST cutoff). Distribution is sales-led and multi-channel: direct employer sales, a strategic distribution partnership with Precision Retirement Group for governmental plans, an investment-advisor channel, and self-service/toll-free participant support.

Pelion employs approximately 10 named staff with senior leadership tenure of 18-26+ years, and operates on a quote-based, multi-year contract pricing model with fees allocated across Administrative, Asset, and General/Special categories, plus reimbursement of 12b-1 and sub-transfer fees to the plan. No revenue, funding, or M&A activity is disclosed. The company has qualified thousands of plans before the IRS Employee Plans Division over its 40+ year history.

Name

Pelion Benefits

Legal name

Pelion Benefits, Inc.

Website

https://pelionbenefits.com

Company type

Private

Founded year

1984

Operating status

Operating

Short description

Pelion Benefits is a Durham, NC-based retirement plan administrator (founded 1984) that provides recordkeeping, compliance, and participant support for 401(k), 403(b), 457, FICA Alternative, VEBA, and HRA plans to governmental, tax-exempt, and for-profit employer clients using FIS Relius, Charles Schwab, and Morningstar infrastructure.

Ownership category

akta.pro rank

Product category

Retirement Plan Administration and Recordkeeping

NAICS

Pension Funds (525110), Health and Welfare Funds (52512), Insurance and Employee Benefit Funds (5251)

SIC

Insurance Agents, Brokers & Service (6411)

akta.pro primary industry

Employer Retirement Plan Advisory (401(k)/Pension) (FSAEABAE)

akta.pro secondary industries

Employee Benefit & Retirement Plan Trust Services (FSAAANAC), Retirement Plan Participant Advice & Managed Accounts (FSAEABAF)

Keywords

• Retirement plan administration
• Plan recordkeeping services
• Compliance testing services
• 401(k) administration
• Governmental plan administration

Headquarters

HQ city

Durham

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Retirement Plan Administration Services: Fees for administering qualified employee benefit plans including 401(k), 401(a), 403(b), 457, defined contribution, profit sharing, and HRA plans. Services include compliance testing, record keeping, plan document services, and IRS/DOL reporting. Revenue model is service-based with fees likely allocated across administrative, asset, and general/special fee categories.
2. Participant Support Services: Toll-free call center support and online account access for participants. Quarterly statement delivery and distribution processing for plan participants.
3. Investment Custodian and Brokerage Services: Revenue derived from managing self-directed brokerage accounts through Charles Schwab, with access to over 7,000 mutual funds. Fees tracked include 12(b)1 fees and sub-transfer fees.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels4 records

Core offering

Pelion Benefits is a third-party administrator that designs, administers, and recordkeeps qualified retirement and benefit plans — including 401(k), 401(a), 403(b), 457, FICA Alternative, VEBA, HRA, and Section 125 plans — for employer plan sponsors and governmental entities. Core services encompass compliance testing, daily valuation via Relius Administration by FIS, IRS/DOL reporting, plan document drafting, and 24-hour participant self-service with toll-free call center support. The firm also offers two branded products: Pelion Blue 401(k) Advantage (with 7,000+ mutual funds and self-directed brokerage through Charles Schwab) and PRIME CHOICE® (a Constructive Receipt-safe plan for government employers to convert special compensation into HRA or 401(a)/403(b)/457 contributions).

Product overview

Pelion Benefits offers a unified retirement benefits administration platform comprising two core branded products: Pelion Blue 401(k) Advantage (providing 401(k) plan administration with 7,000+ fund options and real-time trading) and Prime Choice® (enabling government employers to convert special compensation into medical or retirement benefits). These are supported by comprehensive administrative services including 401(k), 401(a), 403(b), 457, FICA Alternative, VEBA, and HRA plan administration. Key service modules include recordkeeping (via Relius Administration by FIS), daily valuation, participant support (24/7 web access, toll-free call center), plan document services, and investment advisor services with multiple custodian options including Charles Schwab and various insurance companies. The platform provides compliance testing, IRS/DOL reporting, and integrates with Morningstar for fund performance data and SmartPlan for enrollment tutorials.

Differentiator

Problem solved

Functional benefit

Brands

• Pelion Blue 401(k) Advantage: A one-stop shop for Investment Advice, Self-Directed Brokerage Accounts and Automated Plan Administration offering access to more than 7,000 mutual funds.
• Prime Choice®

Products and services

• Pelion Blue 401(k) Advantage A comprehensive 401(k) plan administration product offering access to more than 7,000 mutual funds, real-time trading, self-directed and advisor-directed trading options, independent investment advice, automatic rebalancing, and automated plan administration for employer plan sponsors and their participants.
• PRIME CHOICE® Plan A post-retirement medical expense and special-pay plan allowing government employers to convert special forms of compensation (sick leave, vacation, incentives) at retirement into employer contributions to either a Medical Trust (PRIME Plan/HRA) or a Special Pay Plan (401(a), 403(b), or 457 Deferred Compensation), while avoiding the IRS Constructive Receipt doctrine. Distributed with Precision Retirement Group; administration and recordkeeping performed by Pelion Benefits.
• 401(k), 401(a), 403(b), 457, and FICA Alternative Plan Administration

Quantifiable outcome

• Thousands of plans qualified before the IRS Employee Plans Division
• +2 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature6 records

Partnerships

Five partnerships are on record, tiered core and supporting.

• Precision Retirement GroupcoreStrategic or Co-development PartnerPrecision Retirement Group is Pelion Benefits' product plan provider for the PRIME CHOICE® Plan. Precision works with governmental entities to convert special forms of compensation at retirement into employer contributions to either a Medical Trust (PRIME Plan/HRA) or a Special Pay Plan (401(a), 403(b), or 457). All participant administration and recordkeeping is performed by Pelion Benefits.
• Charles SchwabcoreTechnology or IntegrationCharles Schwab serves as the investment custodian for Pelion's open architecture plan design and self-directed brokerage accounts. Participants may choose to have a segregated self-directed brokerage account offered through Charles Schwab, receiving individual monthly statements and quarterly plan statements from the custodian.
• Relius Administration by FIScoreTechnology or IntegrationPelion Benefits utilizes Relius Administration by FIS to provide daily valuation for defined contribution plans. The system includes fully interactive participant and plan sponsor web applications with transaction history, loans, individual rates of return, Morningstar performance information, and prospectus data.
• SmartPlansupportingTechnology or IntegrationSmartPlan is the online video enrollment and educational tutorial platform used by Pelion Benefits for participant enrollment. Enrollment booklets with investment performance data are also available when required.
• American Funds, Lincoln Financial, Nationwide, The Standard, John Hancock, Matrix, Securian, TransamericasupportingTechnology or IntegrationThese investment companies are listed as additional custodian record-keeping options available through Pelion Benefits alongside Charles Schwab, providing a broad array of investment options for plan participants.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• Empower: One of the largest U.S. retirement plan recordkeepers and TPAs (formed from the merger of Empower Retirement, Prudential Retirement, and MassMutual's third-party administration business). Directly comparable to Pelion Benefits in administering defined contribution plans, 401(k), 403(b), and governmental plans, but at vastly greater scale and brand recognition.
• Ascensus: A leading independent TPA and recordkeeper serving employer-sponsored retirement plans (401(k), 403(b), governmental 457, FICA alternative programs). Highly comparable to Pelion Benefits in service mix — particularly in governmental and tax-exempt plan administration — but with significantly larger scale and broader product breadth.
• Fidelity Workplace Investing: Fidelity's workplace retirement business provides 401(k), 403(b), and defined contribution plan administration, recordkeeping, and investment options to employers of all sizes. Comparable to Pelion in core administration services, but with massive scale, in-house custody, and brand advantage.
• ADP Retirement Services: ADP provides 401(k) and retirement plan administration primarily to small and mid-sized employers, often bundled with payroll. Directly comparable to Pelion's for-profit employer 401(k) segment and SMB focus, with significantly larger scale and broader distribution.
• Schwab Retirement Plan Services: Charles Schwab's retirement plan recordkeeping business, which also serves as Pelion's custody and self-directed brokerage partner. Comparable in recordkeeping and participant experience to Pelion's open-architecture offering, but at massive scale across thousands of plans.
• Vanguard Retirement Plan Services: Vanguard provides 401(k), 403(b), and defined contribution plan recordkeeping and administration with a focus on low-cost investment options. Comparable to Pelion in plan administration scope, but with materially greater scale and participant asset base.
• Paychex Retirement Plans: Paychex provides 401(k) recordkeeping and administration bundled with payroll to small businesses. Directly comparable to Pelion's for-profit SMB 401(k) segment with strong overlap in target customer profile, though at much larger scale.
• Lincoln Financial Group (Retirement Plan Services): Lincoln Financial provides defined contribution plan recordkeeping, administration, and group annuity products to employers. Comparable to Pelion in core 401(k)/403(b) administration, with broader investment and insurance product offerings.
• Nationwide Retirement Solutions: Nationwide's retirement solutions business specializes in governmental 457(b), 401(a), and FICA alternative plans for state and local government employers — directly comparable to Pelion's governmental plan specialization, with much larger scale and broader geographic reach.

Direct peers

• Sentinel Benefits & Financial Group: A mid-sized independent benefits and retirement plan administrator offering recordkeeping, compliance testing, and plan design for employers including governmental and tax-exempt plans. Closest comparable to Pelion Benefits in size, niche focus, and service model.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Pelion Benefits