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Total Retirement
Outsourcing –
The Total Retirement Solution
INTEREST IN TOTAL
retirement outsourcing continues to grow in 2008. In
Diversified Investment Advisors’ Report on Retirement
Plans – 2007, although the number of firms currently
using or in the process of implementing outsourcing has
remained flat over the last year, interest in this area
has risen from 20% to 29%. Moreover, firms who decided
against total retirement outsourcing have declined from
31% to 26% during the same period. Clearly, this
administrative solution for a company’s multiple
retirement plans is starting to gain attention and
traction in the market.
If your client offers both defined benefit and defined
contribution retirement programs you may want to
evaluate the advantages of consolidating the management
of their plans under one provider. By outsourcing all
plan services to a single vendor, plan sponsors may
experience a reduction in internal administrative costs
and improvement in plan benefits. Additional benefits
of consolidation include an integrated communications
program and Web site, one customer contact center,
consolidated quarterly statements, single payroll feed
and participant retirement planning tools.
In the study, plan sponsors surveyed mentioned access to
up-to-date regulatory information and technology, ease
of data management and convenience to employees as some
of the perceived advantages of total retirement
outsourcing. It is also encouraging to note that of
those organizations who have decided to take advantage
of outsourcing, satisfaction is high, with 75% reporting
that they are either satisfied or very satisfied with
their arrangements.
To learn more about Diversified’s Total Retirement
Outsourcing capabilities, call 800-770-6797 or visit
their Web site at
www.divinvest.com.
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