News

"As staff members in the HR and benefits department often wear multiple hats, from overseeing an organization's retirement plan to managing a company's health care benefits, it is easy for these workers to feel overwhelmed, stressed and burnt out at times. For plan sponsors ... it is important to be aware of the challenges that HR and benefits staff members face daily and not blur the line of fiduciary responsibility with these employees."

"[A]dvisors who are considered heavy users of technology tend to outperform other practices in adding new clients and assets under management. Nearly 30% of heavy technology users are identified as being higher-growth practices over the most recent three-year period, compared to just 9% of light users ... [T]he tools that contribute most to improving operational efficiency [include]: [1] e-signature (65%); [2]  CRM (44%); [3] video conferencing (29%)."

"Consultants and researchers acknowledged the markets' impact last year boosted assets under administration, but they said record keepers will need more consistent sources of future growth. They predict more consolidation among record keepers, more educating sponsors to adopt auto enrollment, greater emphasis on keeping participants' assets in plans and accelerated efforts in pursuing startup and smaller DC plans."

"It would be logical to conclude that DOL 4.0 has left agents little hope of remaining viable. But the exact opposite is true. Insurance agents have an enormously important contribution to make to their client's retirement security, and in a way that investment advisers and financial planners typically overlook."

"[We] are seeing the growth of technology and AI service providers who are providing the necessary avenues for even smaller TPAs to access data with the same or even more ease and efficiency as their big brothers have been exhibiting for several years.... [T]his is a game changer for everyone, and has the potential to make the entire plan administration process more efficient for everyone."

"For retirement plan recordkeepers, the past few years have marked a significant transformation, set in motion by the dual forces of consolidation and the unyielding quest for innovation and scale. As the number of recordkeepers dwindles, those that remain are redefining what it means to be a recordkeeper in today's market.... These changes signal a new era for retirement plan sponsors and participants, one where the choice of a recordkeeper goes beyond basic recordkeeping to include a broad spectrum of financial wellness, technology, and personalized advice solutions."

"Defined contribution investment-only asset managers have played a vital role in the retirement plan ecosystem as it has evolved.... But these fund managers have also faced myriad business challenges in recent years. Continued fee pressure and an uptick in shopping for the right funds has plan sponsors increasingly embracing collective investment trusts and passive strategies -- pushing out the once DCIO-dominant actively managed mutual fund."

"According to surveying done by T. Rowe Price, 100% of large retirement plan advisories are now providing wealth management strategies to plan participants.... [T]hat trend is likely to continue in coming years ... Offering both plan advisory and wealth management services makes sense from several perspectives, including higher profit margins than plan advisory work ... But it is also a growth path for plan advisers[.]"

"While AI will remove the human element from some tasks, humans will still be necessary for many parts of the processes. AI will be a productivity add-on for every line of business, not a way of replacing administrators, advisers or other professionals in the retirement business.... Where [the authors] see AI having the biggest impact in the near term is digesting communication with your clients.... What an AI solution becomes, then, is a good assistant whispering relevant information in your ear."

"As the TPA industry becomes more remote in nature, it's increasingly difficult to find ways to build relationships, facilitate new ones, and effectively communicate the value TPAs provide.... [1] Making the most of your time ... [2] TPAs are retirement plan experts ... [3] Improving sales and referral opportunities ... [4] Retention ... [5] Building your retirement army."

"[1] Take a strategic approach to maximizing benefits spend ... [2] Set measurable objectives ... [3] Communication is key ... [4] Publicize benefits programs ... [5] Suggest voluntary benefits ... [6] Understand the population."

"[M]ore than half of smaller employers surveyed by LIMRA that are considering a defined contribution plan are interested in learning more about PEPs, regardless of whether they have a retirement plan currently in place. With that in mind, there are multiple strategies you can consider -- not only to target employers who haven't yet adopted a retirement plan, but also to transition existing retirement plan clients into a PEP. Or even to convert existing MEPs to PEPs."