To address the unique demands of plan administrators and retirement plan advisors, Vestwell has announced two third-party administrator (TPA) product launches—Vestwell Flex and TPA Portal.
Vestwell Flex provides small businesses and retirement plan advisors with a modern recordkeeping product that combines the firm’s platform with the seamless service of TPA partners. In tandem with Flex, the portal allows TPAs to efficiently scale their practices in the small and mid-size 401(k) retirement plan market, according to the Sept. 12 announcement.
“Administrators, frustrated with operational inefficiencies that prevented growth, needed a modern solution. We also saw demand from retirement plan advisors to use Vestwell as a fully unbundled platform, which led us to launch Vestwell Flex,” explains Richard Tatum, President of Retirement Services at Vestwell. “TPAs are a critical part of the retirement industry, helping service businesses and savers. But, often legacy technology holds back the level of engagement possible. These new solutions allow TPAs to expand growth, engagement, and service at a rapid scale,” he says.
For many small businesses and financial advisors, the process to find and vet a TPA partner can be time-consuming and the recordkeeping systems that work well with TPAs can be outdated and maintain significant proprietary fund requirements. Vestwell Flex streamlines this process by bundling pricing and agreements while unbundling TPA services, which are provided by Economic Group Pension Services (EGPS), FuturePlan, MAP Retirement and TRA.
Under the Flex program, Vestwell provides saver-level administration services including eligibility calculations, distributions, loan approvals, notice, and electronic disclosure delivery. TPA partners handle plan design and consultation, as well as provide a streamlined 5500 sign-off process. Advisors and their small business clients select from a set of TPAs based on their needs.
The TPA Portal supports plan design and setup, as well as key insights needed to service a plan throughout its lifecycle. Vestwell’s TPA partners benefit from joining the portal because the platform provides a significant opportunity to drive scale and distribution. The portal also provides an enhanced pathway for Vestwell to drive business to its TPA partnerships.
“As one of Vestwell’s preferred TPA partners, we’re pleased to be part of this new and creative product solution,” notes Kasey Price, President of FuturePlan. “Together, we’re providing advisors with a time-saving solution that allows them the opportunity to scale their practice—and meet their clients evolving business needs.”
