1. The 401kActiveWatch Guide for Prospecting Through TPAs
Growing your practice through a better prospecting strategy.

2. First, let’s hear from a Pension Consultant
Dennis serves as a Fiduciary Manager on our Team of Experts. He is a Pension Consultant and has spent the last 25 years building a successful RP consulting practice. During his career he has consulted on a hospital system, a large manufacturer, a hotel chain and a large IT company.

3. The Real Value Proposition of 401kActiveWatch
401kActiveWatch is our Brand for delivering comprehensive Retirement Plan Solutions.
Our key differentiators with other Retirement Plan shops?
HIS offers in-house and hands-on Investment Models which are only provided by 10% of RIAs.
Our key value is having Fiduciary Advisors deliver Investment Advice and Financial Planning to participants.

4. What is a Fiduciary Advisor?
The role of a Fiduciary Advisor (FA) was first described in the 2006 Pension Protection Act (PPA) See this article.
A FA needs to comply the model or level fee structure as described in the PPA.
Few TPAs, CPAs and even ERISA attorneys will know the requirements for a Fiduciary Advisor.

5. Why have a Fiduciary Designation?
Providing investment advice to a 401k participant at the worksite requires due diligence by the Plan Sponsor (the Named Fiduciary).
An AIF or RF designation gives credibility that you understand the Conflicts of Interest rules.
Having a designation offers a leg up over the competition.
LPL and Morningstar’s Successful Worksite Solutions

6. The Impact of the New Fiduciary Rule
There are over 600, k plans under $10M in assets. This is our target market!
According to recent articles there will be more than 200, k plans up for grabs due to the New Fiduciary Rule.
The historic annual turnover rate for 401k plans < $10M has been less than 8%. Next year rate is projected to be around 33%.

7. What do TPAs do?
Third Party Administrators for Retirement Plans have the following basic functions:
Plan Document amendments and restatements
Conduct all compliance testing (discrimination)
Loan administration and vesting calculations
Provide a Summary Annual Report
Complete the Government Reporting Form 5500

8. The Power of TPAs and their Value to You
Over 400,000 of the 600, k plans under $10M are served by local TPAs.
A small TPA typically handles more than 200 plans.
Their average revenue per client is $2,500.
The majority of their plans are with Insurance Companies and through brokers.
You’ll need a TPA by your side to advise on contribution formulas and combined testing.

9. Why TPAs Want You!
Smaller TPAs are always looking for advisors and brokers to bring them customers.
In the past TPAs were indirectly compensated and got bonuses from Insurance Companies. That’s why their block of business is 80% with insurance COs.
The New Fiduciary Rule will cause many brokers to be unable to service 401k plans. The B/Ds for these 1-2sies will not allow it.
TPAs are now focusing on IARs to fill this gap.
TPAs will especially want 401kActiveWatch.

10. Action Steps for Approaching TPAs
Google “Third Party Administrators for Retirement Plans in your area”.
From your list of local TPAs visit their websites.
Call the TPA and introduce yourself as Fiduciary Advisor with 401kActiveWatch and ask to speak with the owner.
Expect the owner ask you “what is a Fiduciary Advisor?” (Be clear and concise with your answer)

11. Your Goal is Setting an Appointment
Briefly explain to the TPA owner that you are calling to schedule a meeting with him/her to explore a possible working relationship with 401kActiveWatch.
Let the owner know that you would like to meet at their office there at the location you saw on their website.
Give him (likely her) some possible dates and times for this meeting.
Follow through with an to confirm.

12. Your Email to the TPA Owner
Thank him/her for taking your call and their time.
Confirm the date and time of your upcoming meeting.
Let him/her know that you would like to invite your Director of Retirement Plans to participate in this meeting via speaker phone.
CC me in on that .

13. What should you say and do during the Meeting with the TPA Owner?
Let them know about you and your financial planning practice.
Handout the 401kActiveWatch trifold for them to review.
Avoid having a dialogue about RP business and prospecting.
Let him/her know that your Director of RP is waiting for your call. Ask if they could call me and to put it on speaker, so you can introduce us and listen.

14. Conclusion
Don’t Try to be a Pension Consultant..be a Fiduciary Advisor!
Have Mike McClelland interview the TPA owner.
Let me sell you and position 401kActiveWatch and your role to create more leverage.
In your follow up you should highlight your ability to serve plan participants.