Third Party Administration

Third Party Administration, Then and Now

Originally, Internal Revenue Code sections 403(b) and 457(b) placed a limited administrative and regulatory burden on plan sponsors—and on the third party administrators (TPAs) who assisted them. Since then, many regulations have been revised (the most dramatic example being the 403(b) regulations finalized in July 2009) and the Internal Revenue Service and Department of Labor have increased their scrutiny of retirement savings plans.

The result has been significantly greater and more complex administrative responsibilities for plan sponsors. And many first-generation TPAs have found themselves with outdated systems and insufficient regulatory expertise, making it difficult for them to keep their clients’ plans in compliance with new regulations.

Reinventing Third Party Administration

PlanConnect^® waited until the revised 403(b) regulations were finalized and then looked closely to see how TPAs handled the increase in regulatory and administrative responsibilities. After much consideration, we decided that the best approach to plan administration in today’s environment would be to reinvent the TPA.

What Does the Reinvented TPA Look Like? In a Word...PlanConnect^®

Flexibility	Then… *PlanConnect…* Result…	Limited flexibility or choices for services A flexible, menu-driven array of services Plan sponsors have more choices, less burden, better ability to control costs
Communication and customer service	Then… PlanConnect… Result…	Limited communication, especially with plan participants Proactive communication and customer service with plan sponsors, participants, financial professionals, and investment providers Better informed plan sponsors, greater satisfaction from plan participants
	Then… *PlanConnect…* Result…	Few opportunities for TPAs to get feedback Open solicitation of suggestions for better service Ongoing enhancements at PlanConnect^®
	Then… PlanConnect… Result…	Plan sponsors often unaware of pending or recent legislative/regulatory issues Continually informing, updating and educating all clients Plan sponsors are prepared for changes in the 403(b) or 457(b) regulatory environment
Financial stability	Then… *PlanConnect…* Result…	A TPA may lack financial stability and/or resources PlanConnect^® is backed by the strength and stability of AXA Financial, Inc Peace of mind for plan sponsors
Experience, expertise, resources	Then… *PlanConnect…* Result…	Some TPAs have little experience with 403(b) and 457(b) plans PlanConnect^® leverages more than 30 years of experience with 403(b) and 457(b) plans Sound, end to end plan administration for plan sponsors provided by plan specialists

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Please be advised that this web content is not intended as legal or tax advice. Accordingly, any tax information provided in this web content is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transactions(s) or matter(s) addressed, and you should seek advice based on your particular circumstances from an independent tax advisor.