Wells Thomas, LLC passes along 100% of Expense Credit to its clients

Do you know what your clients are truly paying for retirement plan administration? That is a question you should be prepared to answer in light of the recently passed fee disclosure regulation, which goes into effect in 2011.

Many bundled providers offer ‘free’ administrative services, however revenue from the underlying investments are recaptured by the provider. Conversely, in an un-bundled plan, daily valuation providers often pay ‘expense reimbursements’ to third party administrators (TPAs) based upon the total assets of the plan. Up until now, most of these fees from both types of arrangements were not required to be disclosed to your clients.

At Wells Thomas, LLC, as a non-producing TPA, we have always been revenue neutral on any of the daily valuation providers we work with. Any expense reimbursements that we receive are credited in full against your client’s annual invoice, thereby reducing your client’s out of pocket expense. So, as the plan assets grow, your client's out-of-pocket expense may decrease!

In addition, Wells Thomas, LLC now offers the ability for your clients to pay administrative expenses on a monthly basis via an automatic ACH debit. For example, a 10 person plan’s administrative costs would be approximately $1,860 annually, or only $155 per month. And that is BEFORE any potential expense reimbursements from daily valuation providers.

Please feel free to call our office anytime for more information, or for a customized fee illustration, for your clients at 203-483-9998.