I need a Third Party Administrator

[padthaiforlunch]

Hi all. Can anyone recommend a third party admin, or suggest how to go about finding a good one?

I have a client who wants to set up a retirement plan for his employees (10), and another client who wants to set up a cafeteria plan for his employees (50).

These are both firsts for me, so any advice on set-up, offerings, etc. are welcome.

My thought on the retirement plan is a 401(k) which uses monthly contributions to buy annuities. I like the Equitrust MarketBooster Index with the 5% 5 year premium bonus and the two-year point to point with no current cap.

That said, Equitrust doesn't really seem set up for the worksite retirement plan, and Great American does. Does anyone know of other carriers that are equiped for kind of thing?

On the 125 plan, any thoughts or recommendations on group life? If the carrier rating floor is A, and policies are similar, who do you recommend for commissions?

Thanks!

 

[Guest]

Hi all. Can anyone recommend a third party admin, or suggest how to go about finding a good one?

I have a client who wants to set up a retirement plan for his employees (10), and another client who wants to set up a cafeteria plan for his employees (50).

These are both firsts for me, so any advice on set-up, offerings, etc. are welcome.

My thought on the retirement plan is a 401(k) which uses monthly contributions to buy annuities. I like the Equitrust MarketBooster Index with the 5% 5 year premium bonus and the two-year point to point with no current cap.

That said, Equitrust doesn't really seem set up for the worksite retirement plan, and Great American does. Does anyone know of other carriers that are equiped for kind of thing?

On the 125 plan, any thoughts or recommendations on group life? If the carrier rating floor is A, and policies are similar, who do you recommend for commissions?

Thanks!

On group if you are using a GA some of them will set up a 125 POP for free or a very low rate.

You might look at Ameriflex. I've used them before with Colonial clients (they have a deal with Colonial) and they did a good job.

A lot of people like Ceridian. I don't know much about them.

Al

 

[James]

Ceridian is a good choice, but if you are going independent and need a TPA pick carefully, you'll live and die by them!

Here is Ceridian site, you can sign up to be a consultant/broker/partner.

Ceridian - Payroll services, payroll tax filing, time and attendance, human resource management, benefits administration, hr compliance, and employee assistance programs.

 

[Sam]

We use Ceridian and Ameriflex. They have both done a very good job for us.

 

[Guest]

We use Ceridian and Ameriflex. They have both done a very good job for us.

Do either pay a commission? When I've used Ameriflex it has been through Colonial and Ameriflex does not pay anything... although I had to input the data and monitor the 'project.'

Other times, BenefitMall set it up... and I got nothing (I didn't do anything either!)

If you go directly to Ceridian or Ameriflex, do these outfits pay a small commission... or a Starbucks card?

Al

 

[James]

Ceridian will pay $100 finders fee or you can wave it and the group won't pay the $100. I would think if you are serious about worksite solutions, the added benefit of a solid TPA is found in added value not commissions or a finders fee.

 

[Sam]

James is right, also, you can request that they add in a fee and they will do it, but it gets added to the admin costs of the TPA.

 

[Guest]

James is right, also, you can request that they add in a fee and they will do it, but it gets added to the admin costs of the TPA.

Personally I think that if I bring business to the TPA that I should get some kind of remuneration that does not come out of the client's pocket. Even if it is just a token Starbucks gift card for $20, they should do something to show their appreciation to the broker. Not a big deal... but the way I do biz is that if you bring me a paying customer I'll find some way to show my gratitude.

Why should we be a non-cost sales force for a TPA? We don't work for free for the life or health carriers, do we?

Just a thought. Again, not a big deal. (I'm a grump because I just learned that Aetna lowered commissions to 17% until you write 11 apps... or something like that... and I expect the Blues to do the same.)

Al

 

[Sam]

Personally I think that if I bring business to the TPA that I should get some kind of remuneration that does not come out of the client's pocket.

Whatever anyone gives you will always be coming out of the clients pocket. Yes, they could charge the client higher fees, with a standard commission for you, and you would feel better because it is them taking it from your client and not you, but it is the same money and it comes from the same people.

If you feel comfortable taking 17% from Aetna, when you know that that comes from the client and pays you for your service, then if are doing someone a service and feel you deserve remuneration, you shouldn't have a problem adding in an admin fee.

 

[Guest]

then if are doing someone a service and feel you deserve remuneration, you shouldn't have a problem adding in an admin fee.

I don't think someone with a standard life agent license in CA is allowed to charge a fee to a client. I never heard of anyone doing so.

Maybe with group you can do that?

News to me.

Al