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Press Release

Responding to Increased Demand for Rollover Management Services, RolloverSystems Enhances Support for TPAs, Advisors, Plan Sponsors

Charlotte, NC (April 23, 2008) – RolloverSystems Inc. (RSI), an independent provider of rollover services, will enhance its support for third-party administrators (TPAs), plan advisors and plan sponsors in response to increasing demand for the company's unique abilities to manage 401(k) plans' rollover processes.

By reorganizing its advisor and TPA teams, RSI will be able to address the unique needs of each of its related but distinct audiences. Additionally, RSI will be better able to help TPAs and advisors understand how to use RSI's services to differentiate their practices, increase revenues and heighten customer loyalty.

"In light of the recent Supreme Court decision, the adoption of auto enrollment, and other important trends that are fundamentally changing the way sponsors manage their 401(k) plans, interest in our rollover management services has been growing steadily," said Jim Langenwalter, chief marketing officer. "So we want to make it as easy as possible for a growing number of TPAs and advisors to work with us to get their plan sponsors onto our system as quickly as possible."

As a result, RSI has created:

  • A team to work exclusively with TPAs to help maximize the value of RSI services to their clients and to help TPAs understand how rollover management can help them strengthen and differentiate their practices.
  • A team to work exclusively with advisors and plan sponsors. This group will help advisors understand how they can bolster service to their plan sponsor clients and use RSI capabilities to enhance their own revenues. The group will also work with plan sponsors to address "plan performance gaps" – the risks brought about by the "drag" on a plan caused by a significant number of accounts belonging to terminated employees.
  • A team of consultants who will work with TPAs and advisors to ensure fast and efficient implementation of RSI's engagements.

According to Langenwalter, demand for RSI services has steadily increased as TPAs, advisors and plan sponsors look for ways to:

  • reduce plan costs. According to studies, as many as 30 percent of participants in 401(k) plans are terminated employees, meaning current workers subsidize the upkeep of their accounts. Additionally, terminated employee balances drive down the plan's average account balance size, with implications for plan costs.
  • cut administrative costs. Plan sponsors are required to locate terminated employees who are still in the plan and provide them with sufficient information to make informed investment decisions, a costly, time-consuming process that also creates challenges for the employee benefits staff.
  • and reduce fiduciary risk. The Supreme Court's recent LaRue decision, which allows 401(k) participants to sue plan administrators for breach of fiduciary responsibility, has prompted some experts to predict that participants could sue plan administrators for failing to provide adequate guidance about rollovers and other options when leaving their plans.

RSI's expertise in managing the rollover process makes it uniquely qualified to respond to these three needs. In particular, RSI can help sponsors to improve plan efficiency and their advisors achieve lead referrals by a fiduciary sound process to remove terminated participants by:

  • Rolling out small balance accounts through its efficient Auto Rollover process;
  • Rolling over participants into an independent solution of IRA products; and
  • Supporting participants through the process with its retirement center focused on providing participant education on retirement options, access to retirement solutions and complete transaction facilitation.

For more information, visit www.RolloverSystems.com.

About RolloverSystems Inc.

Charlotte-based RolloverSystems, Inc. (RSI) is an independent provider of rollover services. Partnering with plan service providers, advisors and investment firms, RSI empowers plan sponsors to optimize plan performance by implementing rollover features that ease administrative burdens, reduce fiduciary liability, manage and improve costs, and help participants stay invested in retirement.