2011 NIPA Retirement Plan TPA Study.

Transcription

1 211 NIPA Retirement Plan TPA Study

2 Content 2 I. Sales & Marketing II. Management Practices III. Behaviors and Preferences

3 I. Sales and Marketing 3 Please indicate the following based on 28, 29, and 21 (projected) results for your practice: 4 Average annual sales growth <% - 5% 5-1% 1-15% >15%

4 I. Sales and Marketing 4 Please indicate the following based on 28, 29, and 21 (projected) results for your practice: Average annual revenue per employee < > 2

5 I. Sales and Marketing 5 Please indicate the following based on 28, 29, and 21 (projected) results for your practice: Average annual client retention <8% 8-87% 88-93% 94-97% >97%

6 I. Sales and Marketing 6 Plans under management: < >1

7 I. Sales and Marketing 7 Total assets of plans under management < $25M $25M - 5M $5-1M $1-25M $25-5M $5M - 1B >$1B

8 I. Sales and Marketing 8 Total number of participants in plans under management , 1, - 25, 25, - 1, > 1,

9 I. Sales and Marketing 9 Years in business: <5 Years 5-1 Years 11-2 Years > 2 Years

10 I. Sales and Marketing 1 Number of employees: < >5 Employees

11 I. Sales and Marketing 11 As a TPA, what percentage of revenue is from clients where you: Outsource record keeping Perform daily valuations in-house % of firms Pooled investments for non-daily valuation plans such as P/S, D/B, etc

12 I. Sales and Marketing 12 Which of the following best describes your sales strategy? % of firms Producing TPA Consulting TPA Consulting TPA with dedicated sales

13 I. Sales and Marketing If you are a producing TPA, do you employ a captive sales force? 13 Yes 39% No 61%

14 I. Sales and Marketing 14 What are your two most important sources for new business? Most important Advisors Cold calling Marketing programs Professional affiliations or networks Wholesaler referrals Social media CPAs Client referrals First and second most important, aggregated Advisors Cold calling Marketing programs Professional affiliations or networks Wholesaler referrals Social media CPAs Client referrals

15 I. Sales and Marketing 15 What percent of your new business is attributable to your most important business source? 4 3 % of firms 2 1 1% 9-99% 8-89% 7-79% 6-69% 5-59% <5%

16 I. Sales and Marketing 16 What percent of your new business is attributable to your second most important source? 4 % of firms >5% 4-49% 3-39% 2-29% < 2%

17 I. Sales and Marketing 17 Please select the following initiatives you have in place (check all that apply). An active pr/advertising program Annual sales and marketing plan Documented policies and procedures to handle client issues Brand/value proposition statement Social media program

18 I. Sales and Marketing 18 Indicate if you have a relationship with a payroll vendor for new business and/or integrating services for a client? 1 75 % of firms 5 25 Yes No

19 I. Sales and Marketing 19 Rank the most important brands when selling your services. -Most important my firms product providers advisors professional referral source other -Second most important my firms product providers advisors professional referral source other

20 I. Sales and Marketing 2 In 211, will your new business be: % of firms group annuities only security products only a mix based on client or advisor preference

21 II. Management Practices 21 Do you develop an annual written business plan? 6 % of firms yes no If yes, which of the following does it include? Accounting and finance Human resource mgmt Mergers, acquisition Operations Sales and marketing

22 II. Management Practices 22 Which statement best describes your the way your operations are structured? function client client-based teams, individuals function specific

23 II. Management Practices 23 Do you have documented business practices in place? 8 6 % of firms 4 2 yes no If yes, have you established a program to measure operations results against goals? % of firms yes no

24 II. Management Practices 24 Do you follow industry best practices? 6 45 % of firms 3 15 If yes, what is your source for determining best practices? yes no SAS 7 CEFEX ASPPA NIPA Other TPAs Professional conferences DOL IRS

25 II. Management Practices 25 Do you outsource any of your TPA functions? 1 75 % of firms 5 25 yes no If yes, which of the following? Client service Distributions Documents Filings Record keeping Testing Actuarial Trust accounting Billing/collections

26 II. Management Practices 26 Which of the following statements best describes your approach to technology? We frequently upgrade to the latest software and regularly upgrade our hardware We wait for the kinks to be worked out of the latest software and hardware before upgrading We use existing software and hardware until we have to upgrade We developed our own software

27 II. Management Practices 27 Do you have a succession plan in place? 1 75 % of firms 5 25 yes no If yes, it is properly funded? 1 75 % of firms 5 25 Yes No

28 II. Management Practices 28 Do you have a disaster recovery plan in place? 1 75 % of firms 5 25 Yes No

29 II. Management Practices Indicate firm revenue percentages attributable to each of the following: 29 Admin. / consulting fees Commissions 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% % 2% 3% 4% 5% 6% 7% 8% 9% 1% Overrides/concessions Recordkeeping Other 1% 2% 3% 4% 5% 6% 7% 8% 9% 1% 1% 1% 2% 2% 3% 3% 4% 4% 5% 5% 6% 6% 7% 8% 7% 9% 8% 1% 9%

30 II. Management Practices 3 How frequently do you bill your clients? Annually Semi-annually Quarterly Monthly Is your billing proactive or reactive? Reactive 4% Proactive 6%

31 II. Management Practices 31 Which of the following method best describes your pricing strategy? Price to market Cost plus Hourly A combination of cost plus and price to market

32 II. Management Practices 32 What accounting software does your practice utilize? Brand name 89% Other 4% Custom written 7%

33 II. Management Practices 33 If you utilize a brand name package, which do you use? Other 9% RElius 2% Quicken 3% MAS9 5% Great Plains 3% CCH Practice 3% Peachtree 3% Quickbooks 72%

34 II. Management Practices 34 What financial reports do you use to manage your business? Balance sheet Income statement Accounts receivable Accounts payable Cash flow Budgets

35 II. Management Practices 35 How frequently do you value your business? 6 45 % of firms 3 15 Annually Bi-annually Semi-annually Never What is the basis of your valuation? A function of margin and revenue 21% A multiple of earnings 25% Other 1% A function of revenue 44%

36 II. Management Practices 36 What systems do you use for: Daily valuation software Plan Documentation Relius Administration Datair Sungard ASC Other Relius Administration Datair Corbel FT William McKay Hochman Accudraft ASC Other TPA compliance Tax form prep Client management Relius Administration Datair ASC Proprietary Relius Administration FT William Custom/ In-house/ Proprietary Datair Relius Blaze Sungard Other Other Nexus Other

37 III. Behaviors and Preferences 37 With how many product vendors do you have business? % of firms or less More than 2

38 III. Behaviors and Preferences 38 What are the three most important attributes of a product vendor? Quality of investment lineup Accessibility of plan data Fees Client service to the plan sponsor Client service to the TPA Enrollment support Wholesaler Existing relationships Commitment to the dc business Commitment to the TPA service model Compensation flexibility Marketing support Advisor Advisor referrals Fiduciary support ERISA account capabilities

39 III. Behaviors and Preferences 39 What are the two least important attributes of a product vendor? Quality of investment lineup Accessibility of plan data Fees Client service to the plan sponsor Client service to the TPA Enrollment support Wholesaler Existing relationships Commitment to the dc business Commitment to the TPA service model Compensation flexibility Marketing support Advisor Advisor referrals Fiduciary support ERISA account capabilities

40 III. Behaviors and Preferences 4 Do you consider yourself a fiduciary on the plans you sell? Yes 14% No 86%

41 III. Behaviors and Preferences 41 Pending fee disclosure will cause the following percentages of my plans to change: Product vendors Administrators

42 III. Behaviors and Preferences 42 How often do you meet with your clients? Never Less than annually Annually Semi-annually Quarterly More often than quarterly

43 211 NIPA Retirement Plan Study 43 NIPA TPA report available to members and non-members. Includes complete NIPA TPA study results segmented to your peer group: -Plan Count - <1, 1-5, 5-1, > 1 -Producing vs. Consulting Cost: Members: $21, Non-members: $39 Includes peer group report and best practices as well as 3 minute review and discussion with Pulse Logic