Five reasons to partner with a TPA

1 You can recapture valuable time

Ask financial professionals why they choose to partner with a TPA on retirement plan business, and they’re likely to mention the efficiencies it creates. As one recently put it, “There’s only so much time in a day. Working with a TPA lets me focus on what I’m best at, while knowing my clients are well taken care of.”

While financial professionals can certainly become adept at retirement plan administration, TPAs live it every day. In the most successful partnerships, both parties play to their strengths—for the benefit of their mutual clients and their firms.

2 You get access to a wealth of retirement plan knowledge

We all want to know that, before stepping into a client meeting, we’re prepared for wherever the conversation might lead. With a TPA in your corner, you’re tapped into a wealth of strategic and administrative knowledge. This can come in handy when preparing a client update or new business pitch.

Better yet, consider making your TPA partners part of your critical client conversations. A TPA can offer an insider perspective on how a new regulation or an aspect of plan design will affect a plan’s day-to-day workings. This can be a great complement to the knowledge you bring to the table.

And like you, TPAs are highly passionate about the retirement business, which will leave an even more favorable impression on your clientele.

3 Referrals!

As a financial professional, you may be proud of the reputation you’ve built in the industry and work hard to keep it. So, what if you could develop a partnership with another high achiever who helps both of you double your new business opportunities? Seems like a no brainer, right?

If you know of a TPA who’s successful in the markets you’re targeting, ask yourself these three questions before broaching a partnership conversation:

• How many new plan opportunities do you generate each year?
• Can you generate those numbers consistently?
• Do you know why your most loyal referrers bring business your way?

If you don’t have the answers, you should. Because together, they reveal the prospecting opportunities your firm can bring to a TPA partnership.

4 More sales and better retention

We all love new business, but if we don’t have the retention to back it up, how successful are we?

The key to plan sponsor clients who stick around (or client retention) is the actual and perceived value your firm provides. Every client wants exceptional service for money spent, and nobody really wants to shop around if they don’t have to. This is where a strong partnership between a financial professional and a TPA comes into play.

Communication and cooperation are key here. As a plan recordkeeper that’s deeply committed to working with both partners, we see that those who can work seamlessly together on a client’s behalf are able to generate more business, keep it longer, and continue to thrive through all kinds of business cycles.

5 The enduring competitive advantage of a team approach

A financial professional and a TPA can be like peanut butter and jelly, left hand and right hand, Batman and Robin.

The point is, each of your firms brings something significant to the clients you serve. For a financial professional, it’s a broad-based knowledge of how a retirement plan fits into a business’s benefits strategy or an employee’s financial plan. For a TPA, it’s deep-rooted insight on how and why retirement plans work. 

When you can package all this knowledge together for a client’s benefit, then you’ve got something substantial that’s more than the sum of its parts.

When you can package all this knowledge together for a client’s benefit, then you’ve got something substantial that’s more than the sum of its parts.

So how can you be sure that your firm and a TPA will make a good match? Make sure the members of your teams will work well together. Just as important, look for alignment in your values, your business strategies, and the way you engage and support your clients.

Keep in mind, partnerships are never perfect, especially at the start. Issues will arise and boundaries may come into question.

But as long as your two firms communicate well, share the same goals, and work to achieve clear outcomes, your relationship will grow stronger and more profitable over time.