Press Release
RolloverSystems Webcast Teaches Plan Advisors How To Build Assets, Enhance Prospecting Through Rollover Management
(June 4, 2008) Managing a 401(k) plan’s rollover processes is an often-overlooked but extremely effective way for plan advisors to build their practices and identify new client prospects while simultaneously helping plan sponsors reduce cost and risk, according to a new on-demand webcast by RolloverSystems Inc. (RSI), an independent provider of rollover services.
The free, 15-minute webcast, available at www.rolloversystems.com/advisors, explores how plan advisors can concurrently strengthen their relationships with plan sponsors and build their participant retail businesses by using RSI’s proven rollover management processes.
RSI continuously manages terminated participants, providing them with information about their options upon exiting the plan, access to independent IRA solutions, and transaction assistance during the rollover process.
For plan sponsors, this means providing their participants with objective choices and having fewer terminated accounts in the plan, which results in reduced costs and risks. For advisors, this means having the opportunity to offer personalized guidance to terminated participants with the highest account balances while relying on RSI to provide guidance and assistance to all other terminated participants regardless of account balance.
“By managing the rollover process, advisors can differentiate themselves as experts in 401(k) plan efficiency and optimization, two topics that plan sponsors are talking about with increased urgency,” said Jim Langenwalter, RSI’s chief marketing officer. “At the same time, they can use the process to systematically receive a steady stream of high value leads from among the terminated participant base, and it doesn’t have to cost them any extra money or time.”
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.
By managing those terminated participants and by helping them to roll over their savings if they choose to do so, RSI can help cut administrative costs and reduce fiduciary risk, particularly in light of the Supreme Court’s recent decision allowing 401(k) participants to sue plan administrators for breach of fiduciary responsibility.
Using the same process, RSI can screen terminated participant accounts and identify those that meet a minimum account threshold set by the advisor. RSI will refer those accounts to the advisor, who can support those participants through the rollover process. RSI, meanwhile, will provide information, assistance and solutions through its Retirement Center to the remaining terminated participants, including those less than $1,000.
“This process serves all parties well,” said Langenwalter. “The sponsor benefits, the advisor benefits, and – importantly – the participant benefits by being better prepared for retirement. In 2007, we conducted more than 112,000 plan participant transactions totaling more than $2 billion, and in 9 out of 10 cases we were able to keep the participant invested in retirement. At a time when cash-outs are rising, that’s an important accomplishment.”
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.
