Key takeaways

• TPAs provide expertise in retirement plan design, administration, and compliance, which can make it easier for plan sponsors to manage their plan.

• Plan sponsors report that working with a TPA saves them time, strengthens their corporate culture, helps fulfill their fiduciary duties, improves their benefits, and enhances their sustainability efforts.

• Businesses large and small can benefit by outsourcing their retirement plan needs to TPAs.

What services do TPAs offer?

Anyone who works with a TPA knows firsthand the value they can add—improved efficiency, expert guidance, and a focus on delivering outstanding service. If you haven’t partnered with a TPA, here are some of the typical services they offer. 

• Plan design—As experienced consultants, TPAs guide you through the plan design process from selection to customization, including partnering with financial professionals (who oversee your plan’s investments) and recordkeepers (who oversee your participant data) to help optimize your plan.

• Plan efficiency—By managing some of the day-to-day operations of your plan, TPAs keep your plan running smoothly, efficiently, and compliant. 

• Legislative guidance—Navigating an ever-changing regulatory environment, TPAs make sure your plan implements key mandates under SECURE 2.0 and other legislation.

• Compliance and reporting—TPAs ensure your plan complies with DOL and IRS guidelines by maintaining documentation, assisting with audits, filing annual reports, and conducting 401(k) nondiscriminatory testing and other tests.

What are the top five benefits of working with a TPA?

Research identifies what plan sponsors consider to be the benefits of working with a TPA: 

1 More time to focus on priorities—By delegating the complexities of retirement plan management to their TPA, plan sponsors have more time to focus on what matters most—providing strategic direction and team leadership.

2 Strengthens corporate culture—TPAs tailor retirement plans to match a company’s mission and employee demographics, which can help strengthen a company’s culture and values.

3 Fulfills 401(k) compliance obligations—While TPAs don’t act as 401(k) plan fiduciaries, they help plan sponsors fill their fiduciary responsibilities, reducing their compliance risks and potential fines and penalties.

4 Improves employee benefits—TPAs are experienced in designing competitive plans that enhance a company’s overall benefits package, which can help attract and retain employees.

5 Enhances sustainability efforts—TPAs integrate new technologies, such as artificial intelligence and automation, which help deliver a sustainable, competitive plan offering.

When to outsource your retirement plan management

Without a TPA, you may be left to design and manage your company’s retirement plan yourself. This can be a costly and timely endeavor and may increase your compliance risks. If you’re considering using a TPA, they can be especially helpful if your business:

• Needs a customized plan tailored to your workforce

• Lacks the time, knowledge, or resources to keep up with regulatory requirements and compliance testing

• Has a larger plan that requires seamless integration with multiple plan providers 

• Wants a competitive plan that’s scalable as your business grows

This publication includes the results of commissioned Anonymous Staff Survey, TPA Adviser Satisfaction Survey, CATScan™ Client Survey, and Business Benchmarking diagnostics conducted by Business Health Pty Ltd on behalf of Manulife John Hancock. Business Health Pty Ltd and Manulife John Hancock are not affiliated, and neither is responsible for the liabilities of the other. The information contained in this publication is provided for informational purposes only and should not be relied upon as the sole basis for making business, legal, or investment decisions. Business Health’s tools have been created to allow the owners of TPA businesses to measure and benchmark their firm’s performance against a relevant, high-integrity, and contemporaneous marketplace data set. All statistics, unless otherwise specified, have been provided by Business Health Pty Ltd and have been compiled from data collected through the use of proprietary third-party administrator diagnostic business tools. Business Health uses secure, purpose-built, proprietary web portals to collect information individually and directly from the owners of TPA firms, their employees, their clients, and their referring financial advisor business partners. All statistics, benchmarks, and insight are compiled from the latest data contained in Business Health’s data warehouse or a subset based on an appropriate/applicable time period at the time of production. As of 6/22/25, in total, data has been provided by 2,881 TPA staff members, 6,156 TPA clients, 472 TPA referral partners, and 554 TPA firms.