Pension Service Providers
Why should a pension service provider or TPA set up its own trust company?
The answer is service. As a third-party administrator or pension service company administrator, it is important to be able to provide your clients a one-stop solution for account handling. Third-party administrators now own their own trust companies as a way of assuring that the accounts will remain in-house.
Here are the important benefits to consider for TPAs and pension service company providers:
Maintain control of accounts. Don't risk loss of your firm's accounts by having them placed with outside third-party trust companies.
Increase your business. More and more clients will come to your firm because you now have your own in-house trust company providing a one-stop solution. Brokers and other referring companies that seek a total solution package can now come to your firm and benefit from one solution.
Increase profits. By owning your own trust company you can increase income from charging trustee fees and other fees that are not available to you if you replace the business in the hands of third-party trust companies.
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