Pros Best for administration of complex plans for medium-sized firms. Unlike in the past, today's insurance firms offer a very wide range of investment options, including mutual fund investments for higher growth requirements. Most firms have prototype plans available, with relatively low start-up and yearly costs for simple designs. Cons Less appropriate for designing complex plans. Employers using a TPA can pick and choose investment options across multiple companies, while those with mutual fund and insurance firms may be more limited in their investment choices.
Cons Tend to be very small operations.
This means more work on your part to check references to make sure the company is a reliable provider. Deal only in developing and administering pension plans. They do not invest pension funds, although they can suggest mutual funds or money managers you may want to contact. The McGraw-Hill Companies Inc. All rights reserved.