I read in one of the Examiner's reports - An employer has to decide in a DC whether to adopt a bundled or unbundled approach to Investment/Administration/Insurance. I am not sure what does bundled/unbundled approach means? Can anybody put forward their thoughts? Thanks
In a bundled approach you assign one provider to deal with all these aspects of running your scheme. In an unbundled approach you choose one or more provider(s) of each service separately (or may choose to handle some of these in-house). The first can be more cost effective, and a single point of contact is likely to be more convenient for the sponsor. The second can deliver superior results, most notably in terms of offering a suitably diverse range of investment options to members. It also makes it easier to cut off a poorly performing provider without dramatic upheavals. The following Q&A is interesting to read if you want to understand it better, or my explanation isn't clear: http://www.standardlife.co.uk/conte...int/article/dear_donald_trust_or_contact.html
