Regulatory requirements for retirement plans are increasing rapidly, resulting in greater compliance burdens and more complex data management for TPAs. Recent industry guidance highlights that ongoing legislative changes—like those from SECURE 2.0—require TPAs and plan sponsors to continually update plan documents, adjust operational procedures, and meet new compliance deadlines, all of which have significantly increased administrative workload in the past two years (Source: CBIZ 2025 Retirement Plan Compliance Guide).

Many firms are still relying on outdated retirement plan software, even as these pressures mount. The gap between what these legacy systems can deliver and what new regulations demand is growing wider, making manual census scrubs, error-prone onboarding, and compliance risk not just operational headaches but business risks as well.

Legacy tools are not just slowing teams down. They make it harder to keep up with compliance and client expectations. This blog will show why AI powered platforms like pension connect, census scrub software, and TPA firm dashboard software are now needed for mid-market Third Party Administrators. These tools are not just upgrades but the new baseline for staying competitive and compliant.

Why the Ground Is Shifting for TPA Firms

New regulations such as the SECURE and SECURE 2.0 Acts and updated Department of Labor (DOL) guidance have fundamentally changed how plan administration works. There are tighter deadlines, more frequent reporting, and higher expectations for accuracy. Mid-sized administrators are managing more plans than ever, often with limited staff.

Here is what this means in practice:

• More data to collect and validate from sponsors, payroll, and participants

• Increased complexity in plan design and compliance testing

• Shorter turnaround times for onboarding and year-end reporting

• Higher client expectations for transparency, speed, and accuracy

Automating routine tasks can increase TPA productivity by up to 80%, leading to higher profitability and reduced burnout. These demands are pushing manual processes and legacy systems to their breaking point.

This is not a temporary spike. It's an industry-wide shift that calls for decisive action. Firms that continue with “business as usual” will struggle to keep up, while those who adapt will position themselves for growth and client loyalty.

Where Legacy Software Falls Short

Most mid-market TPAs still use legacy tools like PensionPro or FTWilliam, which were built for a different time, before automation and before real time data integration.

Common pain points include:

• Manual data entry that increases the risk of mistakes

• Census processing that can take up to 75% longer without automation

• Siloed systems that make it hard to get a real-time view of operations

• Limited or no integration with payroll providers

• Cumbersome compliance tracking and reporting

Manual processes are not just inefficient. They're risky. Manual reconciliation has an error rate of 3–10%, while Stax.ai reduces errors to less than 0.5%. Incremental patches or workarounds are not keeping pace with the demands of regulators or clients.

As a Stax.ai customer recently shared, “We were spending hours each week cleaning up census files and tracking down missing payroll data, and even small errors could trigger compliance headaches or delays for our clients.” Experiences like this are common across the industry.

The hidden costs of clinging to outdated tools add up:

• More time spent on low-value tasks

• Greater risk of compliance penalties

• Lower client satisfaction and retention

Modernizing software isn't just a technical concern. It's a business decision that affects risk, growth, and reputation.

How AI-Powered Platforms Solve Today’s Biggest TPA Challenges

AI-powered solutions such as pension connect, census scrub software, and TPA firm dashboard software are built to address today’s realities. These platforms automate manual work, connect real-time payroll and census data, and streamline onboarding.

Key benefits include:

1. Automation of manual tasks, with census processing, onboarding, and payroll data collection handled automatically. For example, Stax.ai reduces census processing time by up to 75%.

2. Error elimination, as automated scrubbing against plan document provisions eliminates 98% of errors before TPA review.

3. Increased capacity, as automating routine tasks can increase TPA productivity by up to 80%.

4. Cost savings, with annual savings per plan ranging from $20 to $500, depending on complexity and volume.

5. Better client experience, as custom dashboards and branded portals give sponsors real-time access and transparency.

Stax.ai customers consistently report faster onboarding, higher accuracy, and more time for client service. One executive commented, “With Stax.ai, we cut our census processing time by more than half, so our team spends less time chasing data and more time building client relationships.”

Adopting modern software for retirement planning is no longer a luxury. For mid-market administrators, it is now required for growth, compliance, and client satisfaction.

Modernization Is Now Essential

Legacy software just can't keep up with the regulatory and operational demands facing today’s TPA firms. That leaves it to AI-powered platforms like pension connect, census scrub software, and unified TPA dashboards to address the most pressing challenges—efficiency, accuracy, and compliance. For mid-market leaders, modernization is now a must. Firms that act now will be best positioned for growth, client retention, and industry leadership as regulations and expectations continue to change. Assess your current systems, benchmark your performance, and prepare for the next wave of industry transformation. Those who move quickly will lead the market and build lasting client loyalty.

Frequently Asked Questions

How can AI-powered software reduce compliance risk in TPA operations?

AI-driven platforms automate data validation and connect information from multiple sources, which minimizes manual errors. These systems flag compliance issues early, helping firms stay audit-ready and avoid costly penalties.

What are the first steps to evaluate if your current TPA software is holding you back?

Review your error rates, processing times, and integration gaps. Benchmark against industry standards and talk with your team about recurring pain points. This will help you identify where legacy tools are creating risk or inefficiency.

How quickly can a mid-market TPA realize ROI from modernizing with AI driven platforms?

Many firms see measurable savings and efficiency gains, such as 75% faster census processing, within the first year of implementation. The combination of cost savings, increased capacity, and improved compliance makes the business case clear.