October 03, 2011
--- Transamerica Retirement Services is releasing results from its national
"listening tour" with third party administrators (TPAs), which aimed to identify the top five marketplace issues for TPAs. ---
Transamerica
talked with TPA partners and TPA business owners to learn about the
most pressing business issues they’re facing and to seek input on how
Transamerica can better serve their needs.
Transamerica identified these as the top five TPA marketplace issues:
- TPAs are depending on creative marketing strategies to help
grow their businesses. Economic pressures are causing TPAs to focus on
marketing more than ever, and many are looking for ways to implement and
maximize new marketing strategies as a means for future growth, such as
joint marketing campaigns with plan providers that are committed to the
TPA business model.
- Hiring, education, and training support is an ongoing need
for TPAs and their employees. In an industry facing new regulatory and
legislative concerns, TPA business owners have expressed the need for
current and ongoing educational opportunities for their employees.
- As the April 1, 2012, deadline approaches for the new
408(b)(2) fee disclosure rules, plan sponsors are likely to look to TPAs
to help with more fee education. Sponsors will likely use TPAs as a
resource for information on value for cost. TPAs and plan providers need
to work together to help ensure that plan sponsors understand new fee
disclosures.
- Technology platforms offered by plan providers are critical
to TPA efficiencies. TPAs want a flexible business model from retirement
plan providers that gives the TPA technology to ease plan
administration, and choice in how to use the technology platform with
their clients.
- Integration with payroll vendors gives TPAs a competitive
edge. Simplicity in benefits management is key to plan sponsors, and
integration with payroll companies gives TPAs expanded opportunities to
provide streamlined service.
PLANADVISER staff