The program applies to start-up and transfer retirement plans administered with the help of a TPA, and is intended to offset TPA plan installation fees. The allowance was designed to help financial professionals and third party administrators capture more retirement business.
The program was originally scheduled to end in July, but The Principal reports that it has been so well received, it decided to extend by six months. The allowance is available to start-up and transfer defined contribution plans sold from August 1, 2010 through December 30, 2011.
The installation allowance is the latest enhancement to the Principal TPA Edge program, which offers financial professionals and TPAs:
- technology and services that help simplify processes and allow TPAs to focus more on growing their business;
- an investment platform offering multiple investment managers;
- TPA Relations Consultants with more than 18 years experience who are dedicated specifically to TPAs;
- total retirement solutions available for TPA administered plans for both profit and non-profit organizations; and
- local presence in more than 50 cities across the United States with local personnel and services dedicated to TPAs, financial professionals and plan sponsors.
“Response to the expense allowance program has far exceeded our expectations. TPAs and financial professionals are gaining new business as a result of this program and they want to continue taking advantage of it,” said Jeff Schreiber, vice president of TPA business development at The Principal, in the announcement. “Our service model revolves around financial professionals and TPAs so we are delighted to extend a program that gives them a step ahead in the marketplace.”