TPA: Huge Upgrade for Turning Point Customers

Turning Point Associates (TPA) Merger with July Business Services (JULY)
This document summarizes key aspects of Turning Point Associates (TPA) merger with July Business Services (JULY) (https://www.julyservices.com/) and includes details of the transaction. Please contact Ron O’Connor or Heather O’Connor of the TPA Leadership Team if you have questions about any of the details around this transaction.

1. What are the details of the merger transaction?
   On March 13, 2023, July Business Services purchased the retirement plan business of Turning Point Associates. Heather O’Connor will remain a Client Service Manager and play an important role in managing the TPA transition. Ron O’Connor will continue supportinging your plan through the transition.
2. Why did TPA leadership decide this was the right time for this transaction?
   TPA leadership has been seeking ways to improve and enhance technology solutions for clients and advisors and at the same time looking for solutions to help with succession planning needs.
3. What made JULY the right strategic partner?
   First, JULY has a similar service profile and background to TPA. Both firms offer high‐touch service models delivered through experienced / credentialed retirement plan professionals. In addition, JULY and TPA share similar core values / guiding principles (Servant’s Heart, Results Driven, Collaborative Spirit). JULY is seeking to grow and build a stronger presence through strategic acquisitions and TPA was needing a solution for succession planning and ways to increase technology and related solutions for clients. We believe this transaction results in both firms being stronger together.
4. Will TPA’s retirement platform merge with JULY’s?
   TPA and JULY utilize the same recordkeeping software and will be converted to JULY’s technology platform (Relius) on or before May 8th Our plan is to convert all clients over the next 60‐90 days. After the conversion, TPA clients will be able to take advantage of enhancements and custom features JULY has built within the recordkeeping platform to enhance the overall client and advisor experience.

5. Will a blackout be required for retirement plan clients?
   Our goal is to handle the conversion with little or no disruption to clients and participants. While we anticipate completing the transition without a need for a formal blackout, we will be providing a blackout notice just to be certain we satisfy any notification requirement. Also, please note we are working with the plan’s custodial partner to re‐register the plan assets which means your plan will not be liquidated or out of the market.
6. Will advisors, clients, and participants experience a change in service and sales personnel?
   Our goal is to keep consistency in sales and service relationships while at the same time building on the strengths of both organizations. Below is an overview of what clients, advisors, and participants can expect:
   
   • Client Services – For current clients, we are not planning changes to the TPA Client Service Manager,
     Heather O’Connor.
   • 401(k) Participant Services – JULY has a dedicated support team to serve participants (i.e., distribution processing, website support, rollovers, etc.). We offer support via toll‐free telephone and chat and our goal is that participants always reach a live person. TPA participants will gain access to this team.
     
   • Retirement Plan Advisor Services – Advisor Services is an area where we will be stronger together and gain advantages from the strengths of both organizations. TPA and JULY will work together in advisor sales and marketing.

7. What new features can TPAs’ retirement clients and participants expect?
   TPA clients will experience an increase in technology. Below are some of the technology enhancements that TPA clients will experience once we complete the platform merger.
   
   • Expanded On‐Demand Reports – TPA clients will now be provided with a suite of custom, on‐
     demand reports available to all clients.
     
   • Robust User‐Friendly Website – TPA clients will see an enhancement in advisor, plan sponsor, and participant websites. The new website allows participants to enroll, and/or make adjustments effectively and efficiently. Participants can request loans and distributions electronically, while plan sponsors can approve these requests online. Finally, every participant has access to myFutureRetirement, an in depth look at a participants’ retirement goals and guidance in achieving these goals.
     
   • Quarterly Plan Reports – JULY has a comprehensive Quarterly Plan Report that advisors and plan sponsors can use in quarterly meetings. The report covers all aspects of the plan and compares key metrics to industry benchmarks.
     
   • Plan Website App – JULY has a participant web application available via Android and iOS/Apple
     that will be available to TPA.
     
   • Client / Advisor Portal – TPA will be able to offer its clients the Client/ Advisor Portal known as
     JULYPortal. The JULYPortal is used to streamline communication and administrative processes for clients and advisors, including data gathering, compliance and administration, billing and fee management, and other key administrative processes. This tool includes access to projects and key milestones, important plan files, and a secure messaging center to exchange confidential participant information. It also includes a “book of business” view for advisors to help manage their plans.
     
   • Proprietary Enrollment System – JULY offers clients a proprietary Enrollment Application to streamline enrollment for new participants. New participants can access the system via their PC, tablet, or smartphone, making it easy and intuitive to enroll.
     
   • Expanded Payroll Integration – JULY offers automated payroll integration with several payroll firms through 180° or 360° integration under Payroll Pilot. Link to all integrated payroll firms:
     https://www.julyservices.com/payroll‐pilot/.
     
   • 3(16) Fiduciary Services – JULY currently offers 3(16) Fiduciary Services to clients (certain qualifying conditions apply).
8. Will fees be changing for existing clients?
   All core fees will remain the same for existing clients.
9. Will there be a change to a single brand in the future?
   Both firms have built strong brands, but long‐term efficiencies are greater with a single, unified brand going forward. We plan to merge the TPA brand into JULY. TPA clients will begin seeing some elements of JULY branding soon, including on correspondence and email communication.
10. Will we offer training for any new retirement platform features?
    Yes. We will offer training on the newly enhanced plan sponsor and participant websites. We anticipate that training required for clients should be minimal.

11. Will the change require updates to service agreements or custodial paperwork?
    No immediate changes to service agreements or custodial paperwork are required. Over the next few years, as we update service agreement language, it is likely that clients will sign new service agreements, but not a result of the transaction.
12. Will the year‐end compliance and data collection processes for retirement plans change? If so, when?
    JULY and TPA use a very similar process for collecting client census and other data to complete year‐end plan reports and compliance testing. While the general process flow and timing will be very similar, in the future TPA clients will utilize JULY’s proprietary JULYPortal for submitting year‐end census data. We anticipate this will change starting with the December 31, 2023, year‐end census. More information about this change will be provided as we get closer to year end.
13. What should we expect in regard to changes to other core retirement plan processes?
    An important goal is to ensure clients and advisors experience consistency in core processes. We do not expect to make significant changes and expect to keep these at a minimum with respect to payroll / 401(k) deposit processing, fee processing, distribution and loan requests, and other similar processes. We will be evaluating ways to enhance processes and services for clients. Any adjustments to current processes will have applicable training.

To learn more about ESG follow these links:

https://socialk.com/blog/bit-by-bit-socially-conscious-investors-are-influencing-401ks/

https://socialk.com/blog/socialk-benefit-report-2/

https://socialk.com/blog/the-evolution-of-target-date-funds-in-retirement-plans/