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NAPA 401(k) Cyber Summit Insider
Fall 2020
Working with TPAs
The Good, the Bad, and the Good AND Bad — Summit Insider Insights
“Most TPAs prove their value in the consultation and ongoing annual reviews,” commented another. “They are very helpful in plan design and resolving issues”.
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“I work less with TPAs today as I have found that the distribution process, notice delivery, and confusion on the part of the plan sponsor as to who is responsible for what make it more complicated than a fully bundled plan with a great recordkeeper,” said another. “If they provide value, we love to work with them,” said
another. “’Value’ means helping with difficult plan designs, providing good customer service and user experience to the client and to us, keeping us in the communication loop with the client, dedicated to training and continuing education for their staff, and being proactive. While those might seem like they comprise a low bar, but most straight-up cannot provide them”. As long as total fees are competitive with a bundled approach, we feel the TPA adds value to the relationship in many ways. While one Insider cautioned that there can be “too many points of contact if the plan is simple, if we have many different
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“Smaller companies with less in house expertise and resources are the ones I typically gravitate toward TPA usage,” explained another.
“In my experience in certain plan design situations it makes sense to have a TPA (doctor group, etc). If there is a traditional plan design it is easier to have it bundled because there are fewer parties and simpler for the plan sponsor,” commented another. “I have tried a TPA in those situations and it is more confusing for the plan sponsor”.
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“We work with TPAs as we believe in the additional touch, expertise and focus these teams place on the annual recordkeeping, administration and testing where bundled solutions often have individuals simply ‘filling a role’ instead of individuals dedicated to the space,” commented one Insider.
10/1/20 11:34 AM