The Benefits of Unbundled Retirement Plan Services

The Benefits of Unbundled Retirement Plan Services

Administration/TPA, recordkeeping, advisory, and custodial roles are contracted separately for transparency and flexibility.

What ‘Unbundled’ Means

Administration/TPA, recordkeeping, advisory, and custodial roles are contracted separately for transparency and flexibility.

Pros and Cons

Pros: provider choice, fee clarity, best‑of‑breed teams

Cons: more vendor coordination and responsibility for oversight

Fit Assessment

Unbundling often fits sponsors seeking tighter control over fees, investments, and service levels.

Plan Sponsor Action Checklist

Checklist

Inventory current providers and fee structures.
Checklist

Decide which roles you want discretion over (e.g., 3(38) vs. 3(21)).
Checklist

Create an annual service‑provider review calendar.
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References

  • General industry governance practices.