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January 2021

Recordkeeper consolidation may be coming, but don’t squeeze the participant!

The idea that a recordkeeper should “monetize” participants is appalling. George and Abigail Revoir of AMRev Consulting, writing in the November 4th 2020 edition of RPA Convergence opine on recordkeeper consolidation and the ever widening gap between mega and midsize providers. No question there is revenue pressure in our business, but one comment in their otherwise satisfactory analysis of this trend stopped us in our tracks. The end game, says the Revoirs, is to “monetize the participants.” Monetize the participants? How appalling! What plan sponsor wants to hear that in a “finals” presentation! “Mr. Plan Sponsor, we offer X, Y and Z services, but what we’re really after is access to your employees to upsell them non-plan related products and services.” Which CFO is OK providing 100% of employees’ personally identifiable information to an organization that will use it to “monetize” her employees? Be assured, it is quite possible to profitably serve plan sponsors and their participants with accurate, responsive and innovate recordkeeping without having to view participants as piggy banks. NWPS has been doing it for 26 years and we are certainly not the only ones. And let’s not forget the current discussion over who really owns the participant data