One of the most important aspects of a successful retirement plan is its design, which can be created to achieve any number of goals. The right retirement plan design can help employees prepare to retire on time, help the business owner save more, increase tax benefits to the business, reward key employees, give a boost to older employees or achieve a combination of goals.

Understanding what options are available and how they work can be complex and, admittedly, more than a little esoteric. That’s where an assist from a TPA is especially valuable.

A TPA can help advisors and plan sponsors view how a specific retirement plan design will work, provide options and a cost-value analysis, and provide a hypothetical projection on performance. The insights and analysis can help advisors and their clients make the right choice based on goals, budget and regulatory requirements.

For instance, if the owner of a small business is deferring $18,000 (the maximum) to a salary deferral 401(k) plan but wants to significantly boost her retirement savings, a TPA might recommend adding a cross-tested design. This design may allow the client’s business to enhance contributions on her behalf, minimize contributions for non-owner employees and allow for the maximum total contribution of $54,000 for her. In addition, if the business owner is age 50 or older, she can also contribute an additional $6,000, bringing the total amount of contributions by the owner and the business to $60,000. If the small business is a partnership, the inclusion of a cash balance plan may enable contributions of up to $59,000 for select partners and officers.

But what happens after the plan is in place? Many small, and even medium-sized, employers lack a dedicated, in-house specialist to administer retirement plans. Working with a local TPA fills the need to have a retirement expert on hand, adding value to your client relationship.

Then there is the ever-changing regulatory environment. As we’ve seen in the past year, government rules and regulations often shift like the sand on a wind-swept beach. What is an advisor to do when those sands create a new dune to climb or maneuver around?

An effective TPA can help an advisor stay up to speed on regulatory changes. More important, a TPA can help advisors understand the implications of new rules and regulations and, in turn, what they mean to sponsors and participants.

That’s critical as 84 percent of sponsors say they value advisors who are proactive, MassMutual’s Winning Combination study shows. The study also indicated that one area where employers thought advisors could improve is offering information on new developments in retirement plans.

What the research ultimately tells us is that it’s far better if an advisor informs a client about a new regulation and what it means than if the client has to reach out to the advisor about something that has just been introduced.  Few sponsors—especially small businesses—have the time or resources to keep up with the latest regulatory or legislative developments. Serving as their eyes, ears and interpreter is a great way for advisors to solidify their value and the best TPAs can help.