The Principal Financial Group announced today the launch of Principal Professional Link, a new service program for third party administrators (TPAs) to jointly offer unbundled retirement plan services to clients together with Principal.
With the new program, TPAs would decide which service package is best for their clients, and would choose among the different services Principal offers including investment management, enrollment services, participant-level record keeping and complete plan member services. TPAs engaging in the program would have to provide plan design and document services, allocation calculation, compliance testing and reporting services, according to the company.
Principal has offered similar services to TPAs in the past, but only on an informal basis and with much less flexibility in terms of choice of services, a spokeswoman for the company said.
"TPAs play a key role in delivering retirement plan services to today's plan sponsors," said Chris Bowman, VP, retirement and investor services at the Principal. "Unlike other programs, Principal Professional Link puts the decision-making power in the hands of TPAs, allowing them to remain up front with clients as plan design and compliance experts."
While the new program is designed specifically for TPAs, it will also be available for CPSs who provide plan administration and compliance services to their clients, according to Principal.