401(k)/PS Product ideas for 15-30 ee's??

[Guest Penny]

Try a TPA out of Valparaiso, IN

Pension Consulting Services, Inc. at 800-535-8099

They charge $650 to set-up including the document.

$1000 plus $20 per participant annually and that includes the 5500.

We use Kemper Funds and really like the reporting.

[Cathy from Chicago]

For those of you that are involved in not only admin but also investment product sales, I would appreciate some on ideas on the product/vendor that you use for new plans with only 15-30 or so participants. We have been using a group annuity (with VRU feature)which worked out well but the vendor has recently increased their 'backroom' fees so much that there is no justification in continuing to use them for new plan sales. I would appreciate names of investment firms any of you either use or notice your clients use for smaller plans. thanks in advance.

[Guest GregSelf]

For the last 5 years or so, I worked with a local, small TPA. Our market was from 20-100 lives...startups and takeovers. We used the Nationwide- Best of America product. Their fees were competitive, and their services were exceptional. Plus they offered 40+ funds, had VRU and Internet access. They offered fee reductions at certain asset plateaus. We were consistently impressed with our Acct Reps' capabilities. All in all, a very good experience. I speak in past tense only because I haven't worked with them in over a year. I'm not current on any changes in their products/services. Hope this helps.

------------------

[Guest ptpnthr]

Penny, does the $1,000 include an audit (say you have enough participants) or would it be more?

[Scuba 401]

I would also contact a TPA in Coral Gables, FL by the name of Ingham Group 305 662-5557. They offer a cross fund platform (multiple fund platform) and the ability to access and do trades on the internet. Also excellent consulting. Ask for Craig Bonney

[Guest PLHart]

Cathy,

Am I correct in assuming you are a TPA looking for financial institutions with platforms you can work with? If that is the case, we have had great success with MassMutual, Kemper,and MFS. Kemper and MFS are great in the small plan market and they will work with any TPA. MassMutual's program is superb and can also work well in the small plan market as long as the plan receives at least $50,000 per year ongoing contributions or has assets of at least $250,000. You must become an approved TPA to work with MassMutual.

[Guest chant44]

I know of a regional TPA/Reg. Investment Adviser. They work in connection with Charles Schwab. They cater to small plans. ( under 75 employees)We pay a base fee of $650 plus $20 per active participant. Plus $250 to file form 5500. Participants have access to a self directed brokerage account, unlimited mutual funds, stocks, and bonds. You can find info on at www.wellington401k.com.

[Guest AKeith]

Another mutual fund family to work with is Pioneer. They have an admin system similar to MFS and Kemper but it's cheaper. They have good reports and statements plus they are easy to work with.

[IRC401]

Have you considered what your client really needs and have you explained all of the fees? Many people are surprised to learn that there is no ERISA requirement for daily recordkeeping or even participant directed investing.

If you don't have participant directed investments, you should be able to find a local actuarial firm or recordkeeper who can handle the plan for a relatively low cost. Of course, you can always reduce fees by sticking the participants with high asset based fees, which appears to be the name of the game these days.

My guess is that if you have 15-30 participants and daily recordkeeping, you are sticking most of the particpants with (what should be regarded as) unreasonably high asset based fees in order to accommodate one or two people.

[Jon Chambers]

If you are looking for investments and admin, Standard Insurance is pretty reasonable. Their base fee is $1250, plus $27/participant (up to 100). Their annuity fee is 0.86% (assuming no broker is involved and taking a commission). And they have a contribution credit, that reduces these fees some. Best of all, their fund options are multi-family, true no-load including some very competititive low-cost funds from Vanguard and others. I'd suggest that the underlying fund options would make Standard a more attractive alternative than fund companies like Kemper, MFS or Pioneer.

------------------

Jon C. Chambers

Principal

Schultz Collins Lawson Chambers, Inc.

(415) 291-3004