What exactly is a TPA pension plan?

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The role of a Third Party Pension Administrator, or TPA, is both demanding and highly collaborative – and, in my opinion, for many advisors, working closely with TPAs ​​is simply essential.

PTAs manage many day-to-day aspects of a pension plan, bringing their expertise in plan compliance, design and advice.

Of course, I am in this world, but I am very impressed with what the good APTs are doing. They are the ideal partner for investment advisers and registrars, and they play an important role in the winning trifecta of maintaining 401 (k) plans.

Working with a TPA ensures that pension plans meet legal and regulatory requirements, but also comes with multiple benefits. TPAs offer a number of solutions beyond day-to-day administration.

To leverage their strengths, it is important to understand their role and the value they can bring.

1. PTAs will step in to solve problems and are essential to problem solving.

Since the primary purpose of a TPA is plan administration, it provides the practical answers you need regarding plan compliance, administration, counseling, and innovative design options. PTAs are your advocates and will help you navigate the complex rules and provisions that apply to your plan. They can handle everything from routine to complex in order to resolve issues that may strain a counselor’s practice.

2. APTs help advisors grow their business and discover new opportunities.

Because APTs are a trusted resource, clients often turn to them for help in situations where a client needs a new advisor. As such, a qualified TPA can be a great referral service, helping to grow customer activity and uncover new opportunities.

3. TPAs ​​can work well with good archivists.

It is important to choose a TPA and an archivist who work well together, understanding their respective roles and responsibilities, having clear and consistent processes, and sharing information efficiently and easily. Registrars must provide reliable data to APTs to run compliance testing, complete Form 5500 preparation, and review participant transactions. In turn, TPAs ​​support and collaborate with the Archivist and Advisor to provide clients with excellent service and a consistent process.

4. PTAs provide extensive technical support to the table.

TPAs are known to provide excellent technical support and add a layer of local expertise to meet customer needs, from plan design consulting to regulatory expertise and compliance testing solutions.

5. APTs provide invaluable support for plans of all sizes.

APTs are ideal for plans of all sizes, with the ability to manage the day-to-day responsibilities of the plan, which is essential for clients who do not have dedicated employees to manage the plan. For larger plans, which tend to be more complex, TPAs ​​offer in-depth technical expertise to help with sophisticated plan design, compliance advice, and regulatory updates. By partnering with an APT to provide these services, counselors have more time to build their practice.

Ultimately, PTAs are essential partners for advisors and registrars, and provide invaluable personalized service to pension plan sponsors and plan members. Understanding the strengths of TPAs ​​will help new and emerging advisors develop and maintain long-term relationships with clients while enjoying the benefits of having an expert partner in their corner.

Rita Taylor-Rodriguez (Photo: The Standard)Rita taylor rodriguez is TPA Sales Director at The standard. She holds the Certified Plan Fiduciary Advisor and Fi360 Accredited Investment Fiduciary designations.


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