Setting up an employee retirement plan is common for businesses across America. You want your employees to feel valued, and contributing to their future retirement is a measure of goodwill you provide when they come aboard. However, your retirement plan must be managed properly, and it can be difficult to do all this work on your own.
Partnering with a TPA (third party administrator) gives you five major benefits, and each of them makes the choice easier for companies just like yours.
TPAs Offer Better Client Service
A TPA goes far beyond what’s required by the law when offering client service. In effect, a bundled provider offers you “the bare minimum” to save money and time. However, a third party administrator is willing to provide “value added services” that help meet your needs.
In the case of retirement plans, this means that specialists are handling 401(k) and pension administration, reviewing regulatory changes like the roll out of SECURE 2.0, and much more. Corporate leadership can ask questions, get answers, and know that the retirement plan is functioning properly.
TPAs Are Routinely Compliant
As mentioned above, a TPA helps your retirement plan remain compliant. This is especially important as changes are made to existing law. Remember, you don’t have time to manage your business and interface with government regulators regarding minor changes that are—at times—almost imperceptible. However, your TPA understands how to interpret new rules or laws, how they apply to your retirement plan, and how you should respond.
TPAs Save Money
TPAs offer support for the whole of the retirement plan in one place, while offering a transparent fee structure for your business. Plus, the TPA works directly with leadership, management, or HR professionals to offer additional support. As a technical consultant for the retirement plan, the TPA becomes your go-to source
for information as retirement plan laws change, and economic changes impact the needs of your workforce.
A TPA Offers Personalized Administrative Support
Yes, your business must maintain records and handle the money, but your TPA offers administrative support as you collect data. Professionals working with a TPA can reduce errors, avoid potential fines, and audit the plan as needed.
Again, this is a service that businesses need (and are often left to complete on their own under the bundled model.)
A TPA Offers End-to-End Expertise
Whether you’re entering into a new retirement plan, exiting the plan, changing plans, or making adjustments, you get end-to-end expertise from the TPA. You’re not bounced around to different divisions of a large corporation wasting your valuable time waiting for advice.
A TPA works with you directly, assuaging your concerns, allowing you to get the best results, and never leaving you in the dark.
Contact Shore-Tompkins for Additional TPA Information and Support
When you’re ready to work with a TPA, switch from a bundled model, or learn more about how a third party administrator can support your retirement plan, reach out to Shore-Tompkins Actuarial Services. We’re happy to explain how our services work, how we can support your retirement plan, and how your employees will benefit.