Selecting service providers is a serious fiduciary obligation and we see many plans that have been with the same provider for years and years and have never conducted a vendor due diligence review, despite the fact that the plan participants and assets may have grown substantially over the years. We will provide vendor analysis and comparison when needed, but no less seldom than once every three to five years. Often times, your existing provider will reduce fees for you because you put your plan thru the RFP process as they don’t want to lose your business. Because we are a plan level fiduciary with you and are always working in your best interest, we can be your advocate in interactions with vendors.
Some 401k recordkeepers have special niches that they provide to separate themselves from the hundreds of providers that are out there. For example, outsourcing administrative functions (known as 3(16) services) such as eligibility, entry dates, loans, participant fee disclosure and other required notices are gaining in popularity. If a new provider is desired, we help you develop selection criteria that maps to your organizational goals and needs, guiding you through the vendor evaluation process, provide recommendations, and help you manage the conversion process once you’ve made your final decision.
Our value doesn’t end there. We will help you evaluate your service providers on an ongoing basis to ensure they are charging a reasonable fee, benchmarked to industry standards. We will also monitor service quality, so you can use your valuable time managing your business.