Profile

• Not-for-profit
• Unbundled recordkeeping arrangement utilizing annuity contract
• 2000 employees
• Client since 2007

Background

• Existing 401(a) plan design with required employee contribution
• Poor participation with limited education
• Limited investments (only 4 options provided)
• Above market investment and plan level costs
• Cumbersome, manual administration

Challenges

• Multiple employee locations across the U.S.
• Lack of support from incumbent providers
• Multiple service providers involved
• Existing fixed contract provided only staggered payout

Strategy

• Evaluate existing plan design and service agreements (with legal counsel)
• Distribute RFP to benchmark potential service providers
• Increase available investment categories and reduce investment expense
• Improve employee awareness and education
• Reduce plan level costs and streamline offerings
• Improve administrative efficiencies

Results

• Transitioned plan to new, bundled service provider
• Implemented safe harbor match
• Increased investment category coverage; including introduction of target date funds and retirement income solutions
• Assisted in negotiations that resulted in the immediate liquidation of the existing fixed contract
• Conducted education meetings at 17 locations across the U.S.
• Surveyed participatnts post education meetings and tabulated results to better focus ongoing education
• Reduced recordkeeping costs by more than $100,000 annually