Finding a New Retirement Plan Provider

If you’ve been using the same retirement plan provider for 5-10 years now and your company is growing, it might be time to make a change. We’ve asked Investment Advisor Courtenay Shipley of Retirement Planology to give us her thoughts on how to select the right Retirement Plan Provider. Courtenay has shared her wisdom on mistakes to avoid with your company’s retirement plan with us before here. As you read, remember that you don’t have to wade through the options alone – you can partner with someone like her to help you.

It’s overwhelming to shop for a new retirement plan provider, not to mention that the process is probably far down on your to-do list. To make it less painful, here are some tips on shopping for a new retirement plan provider.

Lay out your objectives. Remember, this isn’t a decision to be taken lightly. Not only do you want your participants to be happy (after all, this is a benefit!), but you’re responsible for handling other people’s money. Before you begin, ask what’s the purpose of our plan? What do our employees find meaningful? As an administrator, what would help me run the plan more efficiently and effectively?

Do use a formalized RFP process. Solicit several bids that represent a cross-section of the industry. Use a format that will help you connect the dots between services offered and fees charged. This will save you time, help you compare vendors to determine what fees are reasonable, and show you the range of options in the market.

Conduct interviews. You learn more about an option when you hear a vendor’s pitch or see proposals. During the interview, make a note of the standout features, programs and items you like best or find intriguing, then go back to the other applicants and ask if they have something similar. Be sure you are comparing apples to apples. Ask questions and challenge any statements that claim exclusive results or sound particularly sales-y. Ask what each particular item means to you and your employees. Finally, if you can’t tell why something is so spectacular, ask why you should care.

There are dozens of providers to choose from, all specializing in various company sizes. If you need help narrowing down or finding the list of providers available to you, just ask for help from an investment advisor that will help along the way. Have more questions? Drop Retirement Planology a line on our Contact Us page.