TPAs Happy with Service Providers; Websites Top Selection Criterion
Overall, TPAs are content with their retirement service providers
, although their satisfaction/dissatisfaction metrics continue to converge, according to new research from Chatham Partners.
Sixty percent of the TPAs in a recent survey say they are satisfied with their service providers, 27% very much so. On the other side of the ledger, 22% say they are dissatisfied. The 2015 numbers continue a three-year trend in which satisfaction is declining while dissatisfaction is rising:
- Satisfied: Dropped from 68% in 2013 to 67% in 2014, and 60% in 2015
- Dissatisfied: Increased from 12% in 2013 to 16% in 2014, and 22% in 2015
Chatham also found that the TPA website figures significantly in overall satisfaction and that TPAs mentioned website functionality as the most important criterion they consider when they are choosing a retirement service provider. Fifty-seven percent said it was the top criterion.
TPAs expect services — such as those that are associated with distribution, contribution submissions/remittance and plan installation — to be provided consistently and accurately, the study confirmed.
TPAs most frequently told Chatham Partners that service providers can better meet their specific needs by increasing communication and coverage, providing better technological functionality, improving reporting and making reports more accessible.
“The results illustrate that TPAs’ expectations for service and user friendly technology continue to rise, and the industry is challenged to keep pace,” remarked Joshua Dietch, Managing Director at Chatham Partners. “Tomorrow’s winners will do so by continuing to invest in technology, people, and processes that increase the ease of doing business.”