Jump to content

Nationwide Terminating 300 plus PPA's


Guest TerminatedPPA
 Share

Recommended Posts

Guest Quintero

Has anyone here tried to work with a Suntrust broker? We used to work with this guy who really liked us. Recently he said he still wanted to sell Best of America stuff but that Nationwide’s Miami group, Nationwide Retirement Service, was the only PPA allowed to sell to Suntrust! They even told this guy that he should do a PPA swap on his existing clients or else he could lose them. Aparently they have a contract to offer bargain basement service to Suntrust brokers and now no one else can have this share of the market? What happened to competition and the free market?

Link to comment
Share on other sites

  • Replies 55
  • Created
  • Last Reply

Top Posters In This Topic

Guest consultant

Nationwide has been doing the same thing with the Nationwide Life agents for years. Although I have a good friend who is a Nationwide agent, we could not work with him.

The Suntrust situation does not surprise me and for competition and free market, they just want to retain assets through people they control. Remember, they are trying to keep shareholder's happy at any cost. We do not matter, they don't answer to PPA's, the shareholder's and stock price is number one.

What can you do? Find a better provider, beat them on cost, service, performance and reputation. Move your business before they do. Nationwide's product is more expensive and very labor intensive. Add a broker and it is really pricey. Try a provider who provides more service to the PPA which will allow you to reduce your fee 5 or 10 percent. You will also be back in the marketing game which is how most of us built a block of business in the first place.

Try ManuLife and compare the services and prices to Nationwide. You will find they generate & mail statements, do enrollment meetings and do not use a mickey mouse pricing scheme like Nationwide and it will save your plans some money. They don't own a TPA or do administration in house either.

If you want to see the difference, get a quote from ManuLife on an existing case with the same level of compensation. Just remember when you look at the numbers that many of the plans with asset based pricing will see a fee increase after the end of the year becuase of the investment loss which results in assets decreasing.

In the economic situation we are in today, most business owners appreciate any cost reduction they can find. Why not help them out by reducing their plan operating costs!

consultant

Link to comment
Share on other sites

  • 2 months later...
Guest consultant

Does anyone know the status of the class action lawsuit filed against Nationwide? If so, could you please post the information here.

Thanks in advance

Link to comment
Share on other sites

  • 5 months later...
Guest consultant

I was wondering if anyone has an update regarding Nationwide and the lawsuit? Has any other PPA's been terminated?

Link to comment
Share on other sites

Good Riddance to Nationwide. I am a Nationwide PPA and I can't stand working with them. I had 5 plans with them, 4 large and one small. One large plan has left Nationwide to use another investment provider, two are actively looking. The other large plan is frustrated with Nationwide and probably will start looking soon. The only plan that doesn't care has only seven participants.

I have taken Nationwide off my referral list, and every new client or broker that comes my way, the first thing I say is that we will not work with Nationwide. Too many mistakes and they put all the blame back on the TPA.

This is good news to me. I hope they terminate my contract.

I have absolutely nothing nice to say about them.

Link to comment
Share on other sites

Guest consultant

My thoughts exactly. Has any heard about the investment advisory service Nationwide is begining to offer? I read somewhere that they have established a stand alone company which will provide investment advice to participants for a fee. I would appreciate someone posting a link or info regarding this.

Sounds strange to me.

I can hear the pitch now, "Mr. Plan Sponsor, why are we paying commission to your broker? What is he doing for you? Is he providing investment advice to you and your participants? Since we are providing investment advice, how about signing this letter so we no longer have to pay him, no need to pay for services twice."

Brokers do not mind MPower or ClearFuture, they charge a set amount for the service. But when your service provider and one of your competitors join forces to provide investment advice for a fee to your client, it has to make you a little anxious.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share


×
×
  • Create New...