PLANADVISER - July/August 2017 - 42

servicing strategies
Bringing It All Together
The adviser's role when working with a client's multiple retirement plans
Stephanie Sorenson, a Milliman
benefits analyst in Seattle. These
include time saved for benefits staff;
a single transmission of census data
for both 401(k) and defined benefit
plans, and, with that, greater visibility
of the value of benefits to
employees; better access to advanced
benefits management technology
without direct capital investment;
a single point of contact for the
vendor relationship; and, finally, a
combined nondiscrimination testing
environment. Assuming the price is
right, it can be an appealing picture
for resource-strapped sponsors and
human resource (HR) committees.
In the past, bundled administration
arrangements may have operated
three separate platforms, one
each for DB, DC and NQDC, all under
one brand heading. Service from the
provider was, perhaps, coordinated
by a single account representative or
a small team, but the real legwork of
running the various plans was not
truly unified.
Yet, years of competition and technological
development have honed
and strengthened the TRO marketplace,
while also driving down costs,
experts say. Against this backdrop,
advisers may want to consider how
their own expertise in coordinating
the various moving pieces in TRO can
G
enerally speaking, total retirement outsourcing
(TRO) refers to the farming out of all administrative
functions associated with a company's multiple
retirement plans-defined contribution (DC), defined benefit
(DB) and nonqualified.
Outsourcing plan administration is nothing new, but, as
the recordkeeper marketplace evolves, more providers are
gaining the expertise to administer multiple plan types-
meaning advisers can help plan sponsors find one provider
for
their DB, DC and, sometimes, nonqualified deferred
compensation (NQDC) plans.
If an adviser has worked with a client on one plan, moving
to TRO can give him the benefit of overseeing more plan
assets under administration (AUA).
Advantages for plan sponsors are substantial, too, says
complement their more traditional DC business.
Helping a plan sponsor find a single recordkeeper or
administrator for all of its plans does not always mean the
adviser must become an expert in all plan types, either.
Advisers who have traditionally worked on defined contribution
plans will find that many needs of pension plans do
not necessarily require the adviser to be a DB specialist;
instead, he can quarterback a solution by bringing the pertinent
experts together, says Marty Menin, director of retirement
solutions at Pacific Life in Denver. A similar approach
can be taken for NQDC plans.
TRO Shines Amid Program Complexity
Sorenson explains the benefits of the TRO approach by
walking through a case study the firm is particularly proud
42 | planadviser.com july-august 2017 Art by Sam D'Orazio
http://www.planadviser.com
PLANADVISER - July/August 2017

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