How to tell if you outgrew your retirement plan provider
Let’s start this one off by asking, when was the last time you looked at the retirement plan marketplace to see what was new? Besides margins decreasing, vendors have been working diligently to stay competitive and offer new features and programs. Don’t get me wrong, there’s a lot of stuff that is craptastic, but occasionally there are insights or attributes that would be really helpful to your plan.
If you answered that the last time you looked around – even within your own vendor’s solutions – or solicited that information from a Retirement Planologist was a while ago, like maybe 3 years or more, you run the risk of having outgrown your current provider.
Now, for some other indications that you might have outgrown the plan and vendors you selected in the past. Are you having problems that you didn’t have before?
- Can’t pass testing where you did in the past
- Participation has leveled off but still below goal
- Group meeting attendance is down
- You aren’t sure what the appropriate metrics are to call your plan successful
- Haven’t seen your broker for a long time or can’t define what they have been contracted to do
- The plan seems average but you don't know much about what your competitors are offering
- The number of employees has grown (or shrunk) quickly
- A wellness program was implemented that focuses only on health
- The company has launched initiatives to create a cohesive company culture and internal brand
- The plan hasn’t been benchmarked or evaluated in 5 or more years
If you have experienced any of the items above, it’s likely you have outgrown your plan design and vendors and need to take action to maximize the benefit you are providing.
By action, we mean it’s time to get more information and perspective -- either from a Retirement Planologist who can tell you about marketplace offerings, or from an RFI (an informal request for proposal where you’re soliciting information), or at the very least from your current vendors or recordkeepers.
Remember, plans either add value or take up space. In order for it to continually add value, you’ll need to be vigilant to the changes in your organization as well as the plan industry itself.
Give us a shout if you need general information about what’s available these days for a plan like yours. Or, click here to download our white paper to gauge the success of your plan, learn how to evaluate your must-haves, and determine your vendor questions.