Provider Consolidation Not a Concern

Ongoing consolidation in the retirement industry doesn’t worry plan sponsors.

More than two dozen financial services providers either have sold or outsourced the recordkeeping portion of their plan services in the past five years. Yet, 83% of the plan sponsors surveyed by Spectrem Group are not concerned and 6% believe this industry consolidation will have a positive impact on them.

Mindful of sponsors’ perceptions of the potential impact of consolidation, plan providers that have been involved in the sale or outsourcing of recordkeeping services, say they strived to:

• Establish a reasonable project plan, with allocated resources and manageable time frames.
• Communicate clearly and regularly with clients, client representatives and members of senior management.
• Focus on the benefits the consolidation provides to plan sponsors and participants.

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