Owning or managing a business can be a lot of hard work. From making sure that you find the best employees for the job to managing business expenses, there are a lot of things that need to be taken care of on a daily basis. Managing your company’s employee retirement plans alone can take a lot of time and money. One thing that you can do to help manage your business is by hiring a third party administrator. But what is a third party administrator and what benefits do they bring to your business? Let’s discuss.
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What is a Third Party Administrator?
The role of a third party administrator is to manage a business’ retirement plans. The TPA manages the operational requirements of the retirement plans on behalf of the business. The work that TPAs do for a company can free up time for the owners, managers, and administrators of the companies working with them.
Benefits of a Third Party Administrator
1. Extensive Knowledge
Third party administrators have spent years researching and learning about the various retirement available. This means you don’t have to spend the time researching retirement plans and providers companies, so you can spend more time focusing on other important business matters.
2. Plans Tailored to the Employees
TPAs work to find the best retirement for the specific needs of your employees and company.
3. Enrollment Assistance
TPAs help employees and businesses enroll in their retirement plans. This helps mitigate the hassle and administrative expenses for the employer.
4. Reduction of Regulatory and Financial Risks
TPAs are trained to know the laws and regulations associated with the different types of retirement and benefits plans. By hiring a TPA you can have peace of mind knowing that your company has reduced its risk of regulatory or financial issues. TPAs are also trained to handle the yearly compliance testing needed for some retirement plans.
5. Increased Efficiency
By leaving many of the tasks associated with company retirement plans and record keeping. This allows the administrative professionals in your company to focus on other tasks that keep the company running smoothly. More efficient employees lead to better businesses.
6. Maintenace of Company Records
Along with finding and maintaining retirement and benefits for your company, TPAs also manage and upkeep your company records. Quarterly and annual reports are given to make sure records are on track and balanced.
Managing your business can be stressful, but with a third party administrator, you can reduce that stress and focus on the more important aspects of your business. TPAs are trained and experienced in making sure that your business finds the best plans for your needs.
California Pensions offers third-party administrator services to help your business manage your retirement and recordkeeping needs. To learn more about our services contact us today!
