Case Study #3: Medical Practice Grew Into Urgent Care Facility

A small medical practice turned 5-location urgent care facility:

  • Had very low participation in their plan
  • Repeatedly failed non-discrimination testing
  • Needed to accommodate several self-directed brokerage accounts
  • New CEO and the Human Resources Director desired better understanding their responsibilities with the plan, and making the plan worthwhile for employees

How we developed the solution:

The plan was originally set up as five self-directed brokerage accounts tied together through a third party administrator, and as the business grew, the new staff members were unsure how to set up their account and avoided enrolling. We worked with leadership to put a group plan in place with a recordkeeper that was flexible in allowing self-directed brokerage accounts in the plan. This made the participants who were already used to investing their accounts on their own comfortable while allowing the others to have an easier enrollment and overall plan experience. 

The investment line-up was designed with a robust menu for hands-on investors, pre-made portfolio options for invest-for-me participants, and a menu of low-cost investments for participants who preferred index options. Pairing the new enrollment process with onsite enrollment meetings, their electronic employee onboarding system, and one-on-one meetings, our efforts resulted in a significant increase in participation rates.

Because they continued to fail IRS testing year after year, we worked hard to put a small match in place that fit within the company budget to encourage higher deferral rates and to help employees get on track to save more.  Since there are a handful of individuals who are key to the business and will likely not be able to save enough in the plan, we are examining options for a non-qualified deferred compensation plan as well.

For training the new CEO and HR director on their fiduciary responsibilities, we first formed a retirement plan committee of three individuals responsible for administering the plan. One would be ultimately signing for the plan on all official documents, the second was responsible for the payroll, and the third was the day-to-day contact.  We did a series of onsite training sessions and conference calls with them to cover different aspects of the plan including investment monitoring and selection, DOL and IRS-related deadlines and requirements, managing vendors, best practices for procedures, and time-saving tips.  Together we were able to outline process and procedures, divide responsibilities, and construct a strategy and prudent process for monitoring the plan.

From here, we will continue with a quarterly service plan to help with the plan ongoing by overseeing the investments, assisting with meeting fiduciary responsibilities, educating participants, and advocating for the plan with service vendors.