NAPA Net - Polling Places 111122

(How) Has RK Consolidation Changed Things?

Seems like every couple of weeks a firm is either acquired, or decides to step away from the complicated business of participant recordkeeping – and that’s a year after the most recent wave began. This week, we’d like to know how, from the perspective of your plan sponsor clients, it’s going.

Without question, recordkeeping is a tough and demanding business. Done properly, it requires large and consistent investments in technology and people, and though it’s often described as a “commodity” business, it’s also one that requires that you do everything 100% right every time. Little wonder that there are regular waves of consolidation, with those less able (or willing) to make those commitments exiting the business, either by default or by acquisition.

This week we’d like to know

Question Title

* 1. The last time a plan sponsor client's recordkeeper got acquired, did you?

Waited to see how well things went after conversion.

Waited until after the conversion was completed to put out an RFP.

Immediately put together/out an RFP to evaluate alternatives.

Waited until the conversion planning process started to put out an RFP.

Haven't had a plan sponsor client impacted by acquisition.

Didn't see any need to put out an RFP, as I was already familiar with the recordkeeper.

any comments on the above?

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* 2. How many recordkeepers do you currently (ACTIVELY) work with?

5-10

More than 10

any comments on the above?

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* 3. How many recordkeepers that you actively work with have been acquired/exited the business in the past two years?

More than 5

None

any comments on the above?

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* 4. Generally speaking, how have those conversions gone?

About what was expected.

I'll let you know when it's over...

Worse than expected.

Pretty much as rough as I had feared.

Much better than expected.

None to date.

Better than expected.

any comments on the above?

Question Title

* 5. Of course, acquisitions can also affect service at the acquiring firm - if you work with those - have you noticed any impact on service with the current book of business?

A little, but nothing really meaningful.

No, if anything additional staffing has been beneficial.

There have been rough patches of service "distraction."

Oh, for sure.

Not really.

any comments on the above?

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* 6. Other comments about consolidation, the impact(s) of consolidation, the need for consolidation, the pain and process of consolidation, the benefits of consolidation, the inevitability of consolidation, or life in general?

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* 7. What is your role working with retirement plans?

Advisor

Provider

TPA

Plan sponsor

Recordkeeper

Wholesaler

Consultant

Other (please specify)

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* 8. What size plans do you PRIMARILY work with?

Under $10 million in assets

$10-$20 million

$20-$50 million

$50-100 million

$100 million - $250 million

$250 million - $500 million

Above $500 million

Other (please specify)

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* 9. Suggestions for future survey questions? Seriously - what would you like to know about/from your fellow NAPA-Net readers? Or what would you like to be asked?

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* 10. All responses are confidential, of course - but just in case you would like a response - or want me to know you responded - or just want to say hi - here's your chance to do so (don't forget your email)!