If you have followed along on the ADMIN Partners blog, it’s likely that you have heard us use language specific to the retirement planning industry. However, we realize that not all of our audience is an expert when it comes to the retirement market. With that in mind, we wanted to share some insights on terms that you might hear us, as well as other retirement firms, toss around in conversation.
This week we are exploring data aggregation. This term is one you will see more often in the 403(b) world and it is something that ADMIN can proudly claim we know quite well. As a leading TPA in the 403(b) marketplace, ADMIN’s team is well versed in data aggregation and the benefits that it has for employers sponsoring a 403(b) retirement plan.
SO, WHAT IS DATA AGGREGATION?
In its simplest definition, data aggregation is the process in which information is collected and summarized for the purpose of analysis. While data aggregation is used in a multitude of industries, it is especially significant to 403(b) retirement plans that offer more than one investment provider.
Offering a multitude of vendors does bring investment choice to the plan, but it also adds responsibility to the plan in terms of data management. From supporting the various accounts participants may hold across the various providers to maintaining accounts in providers that are grandfathered or deselected, aggregating this volume of data can be a challenging and laborious endeavor. With this in mind, ADMIN Partners has created a solution that employers can utilize that eases the burden of administering this data. We call this our data aggregation services. On behalf of the Plan, our firm maintains the accounts participants hold across all vendors, regardless of whether the provider is approved in the plan or not. Our team of experts are able to work alongside each investment provider in the Plan to support participants as they build their retirement savings.
It is important to note that not all TPA firms have the ability to aggregate data in this way. In fact, there are a number of companies offering TPA services who are unable to support a multi-vendor arrangement. Therefore, it is important to ask the right questions and ensure that all of your Plan’s data is accounted for.
Want to learn more about our data aggregation services and how they can help your retirement plan? Contact our team of experts at 877-484-4400.