Introduction: When “Good Enough” Becomes Costly
Many TPAs still rely on sponsor portals like PlanSponsorLink (PSL), believing they’re “good enough” to get the job done. Sponsors log in, upload census data, and share documents. On the surface, the box is checked.
But hidden beneath that surface are real costs — wasted time, errors, compliance risks, and frustrated sponsors who expect better. These costs don’t show up on a TPA’s expense sheet, but they impact client retention, staff workload, and long-term growth.
The truth: outdated sponsor portals are costing TPAs far more than they realize.
Old Tech = Poor Sponsor Experience
Sponsors today use modern software for everything from HR to payroll to team collaboration. When they log into PSL, it feels like stepping back in time.
Outdated design: PSL’s interface frustrates sponsors with clunky navigation and confusing menus.
Repetitive tasks: Sponsors are asked to re-enter or reformat data that their payroll systems already contain.
Lack of transparency: Sponsors can’t easily track plan status or see a timeline of requests.
Poor sponsor experiences don’t just irritate users — they erode confidence in the TPA delivering the service.
Time Wasted on PSL: Emails and Manual Tasks
The inefficiency of PSL becomes most visible during census season.
Sponsors download payroll data.
Reformat spreadsheets to PSL’s template.
Upload — only to get error messages.
Email their TPA for help.
Repeat the cycle.
This back-and-forth can consume dozens of hours of sponsor time each year. For TPAs, every sponsor question means more support calls, emails, and lost productivity.
In our survey:
71% of surveyd plan sponsors said their old client portal caused them to waste at least 10 hours each year.
64% of TPAs reported staff spending significant time troubleshooting census uploads.
That “hidden cost” adds up quickly.
Data Errors & Compliance Risk
Manual data entry and uploads aren’t just inefficient — they create risk.
Formatting errors (misaligned dates, missing compensation fields).
Incomplete census data that delays compliance testing.
Extra work for TPAs to validate and clean sponsor submissions.
In the worst cases, errors can delay compliance filings, increasing the risk of penalties or rework costs.
One plan consultant shared:
"We used to spend more time fixing census issues than we do running compliance tests or designing plans. It's backward."
How Modern Portals Improve Retention
Sponsors notice the difference when their portal is modern and intuitive. Instead of feeling burdened, they feel supported.
Ease of use: A sponsor-friendly portal makes interactions simple.
Automation: Payroll-to-census integration eliminates repetitive uploads.
Transparency: Dashboards and timelines give sponsors visibility into plan status.
When sponsors are happy, they:
Stay with their TPA longer.
Speak positively about their TPA to peers.
Advocate for their TPA’s services.
In short: sponsor satisfaction drives retention and growth. Outdated systems like PSL drag those numbers down, while modern portals like Stax.ai CX push them up.
Stax.ai CX ROI for TPAs + Sponsors
The ROI of switching from PSL to Stax.ai CX is measurable and immediate.
For Plan Sponsors:
Save 10–40 hours per year on census tasks.
Fewer back-and-forth emails.
Greater confidence in their TPA.
For TPAs:
Reduce staff time spent troubleshooting sponsor uploads.
Receive cleaner data faster.
Improve sponsor retention and referral growth.
Position themselves as forward-thinking partners.
One sponsor said after switching:
“Our TPA looks like a modern firm now. I trust them more because they invested in making our experience better.”
And a TPA leader added:
“Stax.ai CX paid for itself within the first year, just from the time we saved during census season.”
Conclusion: Hidden Costs Don’t Stay Hidden Forever
Outdated portals like PlanSponsorLink may appear “good enough,” but the hidden costs tell another story: frustrated sponsors, wasted time, more errors, and greater compliance risk.
Modern portals like Stax.ai CX eliminate those costs, delivering measurable ROI for both sponsors and TPAs. The question isn’t whether you can afford to upgrade — it’s whether you can afford not to.
If you’re a plan sponsor, you don’t need to accept outdated tools that waste your time. Let your TPA know there’s a better way.
If you’re a TPA, you and your plan sponsors deserve better. Replace inefficiencies with a sponsor-first experience that boosts satisfaction and retention.
Next
Why Manual Processes Are Holding Your TPA Firm Back and How Digital Transformation and Automation Can Help
The True Price Tag of Outdated 401(k) and Payroll Tools for TPA Firms
Replace hidden inefficiencies with sponsor-first CX.