The Principal Financial Group will start offering TPA services and targeting plan sponsors with assets under $5 million. “These plan sponsors represent 40% of the marketplace. That’s a huge opportunity,” said Douglas Grove, v.p. and national sales director of retirement and investor services. The firm has made a number of hires to support its effort, Grove said. In March Principal hired Jeff Schreiber as v.p. of TPA business development. Schreiber came from Fidelity Investments Life Insurance. Grove said Principal just hired three individuals to support Schreiber, but did not identify them or what their roles will be.
Historically Principal has partnered with TPAs through Professional Link, which was introduced in 2001. Through this service Principal provides customers with compliance and government testing and also handles distribution. Grove said that Principal is ready to take a more active role targeting plan sponsors, but still plans to work with TPAs. “Our TPA partners are so important because they give Principal the local connections with plan sponsors,” he said.