Benefits of bundling from a visual learner’s point of view. See it for yourself.

The benefits of integrating – or bundling – defined benefit (DB) plan services range from enhanced administrative oversight to time and cost savings to accuracy to employee appreciation.  As a visual learner, I always appreciate a good illustration to help me understand why.

Unbundled Arrangement

In an unbundled service model, the plan sponsor typically has a variety of relationships at play, including:

  • Actuary
  • Recordkeeper
  • Custodian
  • Investment Advisor
  • Trustee
  • Participant Services

Coordination is further complicated when the Finance and the Human Resources area have to connect with multiple service providers to discuss the same issue.


Bundled Arrangement

Conversely, in bundled arrangement, issues can usually be addressed in a single call.


The coordination handled by the bundled service provider saves the plan sponsor time, resources and results in lower administration fees.  All of these are noted as likely outcomes of bundling, according to plan sponsors who purchase some defined benefit services as a package from a single provider.[1]

In addition to blogging here, I also tweet regularly about DB topics of interest. Click to follow me on Twitter- @scottruba.

Click here to follow my Defined Benefit blog

Affiliation Disclosures

Insurance products and plan administrative services are provided by Principal Life Insurance Company a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.

 New tracking number


[1] Chatham Partners:  2011 Trends in DB Bundling and Total Retirement Outsourcing