Article Abstract:
Companies offering 401(k) plans need committed third-party administrators (TPAs) who are cost-effective and can meet the services they require. 401(k) plans are offered by organizations like mutual funds, banks and insurance companies. These companies want TPAs that can offer services like maintain records of participating accounts, process loans and change contribution rates. Plan sponsors should specify the services they require, invite prospective administrators and compare information from each bidder.
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Article Abstract:
Companies selecting prospective defined contribution (DC) plan service providers should devise a scorecard as a basis for assessing these vendors. The company's objectives must first be established which would be the basis for eliminating vendors who can not meet their needs. Some of the factors to be taken into consideration in their provider search are the corporate structure and history of the vendor, their flexibility to company needs and their management reports.
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Article Abstract:
The performance of defined contribution plans is being closely scrutinized more than ever. Sponsors realize they must implement investment strategies which are consistent with the goals of the plan. Pension and investment consultants can assess and choose investment managers to guarantee these objectives are met. Performance must be measured against benchmarks. Performance reviews must be prepared based on statistical tracking and modern risk models.
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