By Cyril Tuohy
Great-West Financial has appointed two new directors of third-party administrator (TPA) relationships to serve its TPA channel, which is becoming a more important part of the company’s distribution mix.
New directors Jo Wetherille and Kevin Spaeth join three other TPA relationship directors, each aligned with a geographic sales territory. The directors report to Tom Connolly, the vice president of business development.
"Jo and Kevin bring a broad set of skills to their positions, including both sales and relationship management expertise," Bill Harmon, senior vice president of 401(k) corporate markets, said in a statement. "Their strong retirement plan backgrounds and significant experience in relationship building will benefit our business as well as our TPA partners."
TPAs provide plan design, compliance, administrative support and assistance to plan sponsors. Currently more than 80 percent of Great-West Financial’s new corporate 401(k) plan sales are supported by a TPA.
Wetherille and Spaeth are responsible for growing Great-West's TPA-supported 401(k) business in addition to maintaining existing TPA relationships.
Wetherille will manage TPA relationships in the South Central region. She joined Great-West in 2009 as a relationship manager supporting the distribution of 401(k) products through banks.
Spaeth will oversee TPA relationships in the Pacific region. He joined Great-West from National Retirement Services, where he had served in sales and marketing since 2006.
Large insurance companies and mutual funds have beefed up the TPA channel within their distribution mix as they make retirement plans more accessible to small and midsize companies willing to sponsor a plan.
Earlier this year Echo Robinson, a MassMutual veteran with more than 13 years of experience in the retirement plans industry, and Kevin Catineau joined MassMutual Retirement Services’ TPA sales team.
TPA-influenced assets will increase to 22.5 percent of all 401(k) assets in 2014, according to Cerulli Associates.
Cyril Tuohy is a writer living in Pennsylvania. He has covered the financial services industry for more than 15 years. He can be reached at [email protected].
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