Bundling seems to be what 401(k) plan sponsors are ordering for the retirement plan market. Typically, sponsors use different providers to administer their 401(k) and defined benefit plans. But recent reports suggest that may soon change as sponsors look to cut costs and bundle up both plans together to offer a one-stop plan shop, now known as total retirement outsourcing, or TRO.

TRO is increasing in popularity in the mid-size plan market, which ranges from $25 million to $500 million. Under a typical TRO, a plan sponsor's 401(k) and defined benefit plan are offered separately but are offered by one provider. TRO providers such as Diversified Investment Advisors Inc., Fidelity Investments, Massachusetts Mutual Life Insurance Co., Prudential Financial Inc. and New York Life Insurance Co. have already found favor with sponsors.

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