Digital record-keeping platform Vestwell Monday announced the introduction of two offerings that are aimed at 401(k) third-party administrators.
Vestwell said it's releasing a TPA partner product, Vestwell Flex, as well as a TPA portal. Vestwell’s Flex is a record-keeping product that combines the company’s proprietary platform with services provided by TPA partners. The portal works in combination with Flex to allow TPAs to efficiently scale their practices in the small and midsize 401(k) retirement plan market.
“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,” Richard Tatum, president of retirement services at Vestwell, said in a statement.
Tatum added that Vestwell piloted the two new TPA programs to meet the demands of administrators “frustrated with operational inefficiencies that prevented growth,” in addition to retirement plan advisers seeking “a fully unbundled platform.”
Small businesses often need more help in dealing with their retirement plan and customized retirement plan designs, so TPAs are important to them. Vestwell Flex streamlines the process of finding and vetting a TPA by bundling pricing and agreements while unbundling TPA services, which are provided by industry partners including Economic Group Pension Services, FuturePlan, MAP Retirement and TRA. TPA partners can then handle plan design and consultation, as well as provide a streamlined sign-off process for Form 5500.
Vestwell has also been expanding in the state-sponsored savings plan arena. Earlier this summer, the state of Virginia hired the company to facilitate its retirement savings programs.
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