A press release from the American Society of Pension Professionals & Actuaries (ASPPA) said nearly seven in ten TPA firms (69%) administer 403(b) plans today, representing only about 2% of these firms’ revenue. However, nearly three TPA owners in ten (29%) expect the 403(b) market to be a major growth opportunity in the years ahead, particularly firms that already have sizable retirement plan assets under administration.
The survey, conducted in partnership with Brightwork Partners, found the average number of 403(b) plans administered by these firms jumped by more than half in 2009.
The press release said 150 firms responded to the survey. The research provides a comprehensive profile of the industry and can assist retirement plan professionals in learning about key industry trends, best practices, and what issues and concerns are on the minds of third party administrators.ASPPA revealed the results at its annual conference on October 17. The full survey report will be for sale in November.