DALLAS, Nov. 13, 2013 /PRNewswire/ -- Custodia Financial announces a strategic agreement with TSA Consulting Group, one of the nation's largest independent providers of retirement plans administration services. Under the agreement, Custodia's innovative Retirement Loan Eraser™ program will be available to TSA's clients across 46 states, representing over 1800 plans, more than 800,000 participants and $20B of assets.
Involuntary loan defaults cause in excess of $10 billion of retirement asset leakage annually. Retirement Loan Eraser is a simple, highly affordable, guaranteed loan protection program that prevents retirement plan accounts from leakage by making monthly loan payments and repaying the outstanding loan balance upon the borrower's death, permanent disability or involuntary job loss.
This additional employee benefit comes at no cost to the plan sponsor and combined with clearer loan disclosures will help ensure participants make better decisions regarding their retirement futures. The Retirement Loan Eraser program can be implemented without changes to operational protocols or systems of plans and administrators.
"Involuntary 403(b) and 457(b) loan defaults are an unnecessary, preventable crisis hitting families that are just looking to make ends meet. Unfortunately, plans don't currently offer protection for loans taken during these times of financial difficulty. This is an important step towards creating an industry standard practice that guarantees protection to borrowers taking emergency loans," said Tod Ruble, CEO of Custodia Financial. "Our relationship with TSA Consulting Group provides peace of mind through affordable, guaranteed protection to the almost 1 million participants within TSA's retirement plans."
"Collaborating with Custodia will allow us to better serve the needs of our clients by offering an important tool to protect our plans' participants from retirement leakage," said Joe Rollins President/CEO of TSA Consulting."
About Custodia Financial
Headquartered in Dallas, Texas, Custodia Financial provides innovative programs preventing loan defaults on 401(k) and other defined contribution plans. Custodia's Retirement Loan Eraser™ program is the first of its kind, designed to prevent the multi-billion dollar problem of retirement leakage caused by involuntary loan defaults.
About TSA Consulting Group
TSA Consulting Group, Inc. is a privately held Florida based corporation founded solely for the purpose of providing compliance and administrative services to 403(b) and 457(b) plans maintained by public education (K-12 and college) employers.
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