How to avoid pitfalls in selecting TPAs

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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401(k) plans require treasury, HR joint effort

Article Abstract:

Interdepartmental teams are being utilized to manage 401(k) plans. The human resource and treasury departments are working together to be able to provide the best retirement benefits for employees. This change in plan management is due to the emergence of defined contribution plans and the transfer of investment control of 401(k) plans to its contributors. Treasury and human resources must communicate and share information to come up with investment decisions.

Corporations

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How many fund choices should 401(k) plans offer?

Article Abstract:

A company selecting a 401(k) plan for its employees should initially assess its company goals against its employees' needs. Internal communication and a thorough investigation of the investment options should be done for a successful participation in the company's retirement plan. The employer should be able to address the educational needs of its employees in proportion to the number of available investment options.

Similar abstracts:

• Abstracts: Plan management; trends in outsourcing, bundling services. Bundled 401(k) plan eased installation at many sites

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