10 Ways TPAs Can Help You Grow Your Business

If you haven’t already reached out to third-party administrators (TPAs) to help you grow your retirement plan business, you may be missing out. TPAs bring a lot to the table—including expertise, relationships and resources.

By editors@strategic-i.com | August 30, 2013
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With their skills in advanced plan design and unbiased opinions toward retirement products and services, TPAs can develop and deliver solutions that attract new plans and resolve issues for existing plans. And they can free you to focus on other areas of your practice.

Specifically, TPAs can help you:

1.       Increase your market opportunity. Just over half (54%) new business opportunities in the start-up to $5 million retirement plan market use a TPA service model. (Retirement Research, Inc., 2013) TPAs influence almost $800 billion in 401(k) and 403(b) plan assets. (Cerulli Associates, Jan. 2013)

2.       Boost close ratios. TPAs can add an additional level of confidence in sales meetings due to their niche expertise and industry experience. This can help build credibility, fill the pipeline and improve close ratios.

3.       Add expertise. When a retirement plan committee meets, they often like to see a team of people handling their plan. This lets them know that there are several experienced and specialized professionals to help meet their needs.

4.       Expand your service offerings. From handling complex plan designs and unique investment options to the development of customized reporting or processes like payroll submission – there are a number of areas in which TPAs can provide added services to plan sponsors. This can help you attract new clients or expand your relationships with current clients.

5.       Reduce administrative burdens. Expert TPAs can provide plan administration, compliance testing, government filings and more. Clients often work directly with TPAs in this area, freeing you to continue to bring in new business or to consult with existing clients. TPAs also lift an administrative burden from the client, allowing them more time to focus on their business.