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Generally speaking, the process of selecting a new provider begins with the Request For Proposal (RFP), a series of questions posed by the plan sponsor to a service provider. The RFP should address the provider’s services and level of commitment and experience, among other things. It can help the plan sponsor begin to sense how potential providers’ capabilities match up with the company’s needs. An RFP is important in searching for a provider and is helpful in gauging cost, but Dan Hall, vice president of retirement plan sales at The Standard, cautions that it misses many nuances that plan sponsors should consider. “RFPs are great—we love them. But we’re not crazy about decisions being made [solely] from an RFP,” he says. Therefore, after an RFP is conducted, plan sponsors usually bring in a sampling of vendors that have been determined to meet the company’s needs, for a finalist presentation or in-person interview. Joel Mee, director of retirement plan sales operations at The Standard, says a plan sponsor cannot assess a provider’s values and the type of relationship they would share without a face-to-face meeting. “To make a really good, solid choice, you need to go beyond the RFP and interview the provider [to] understand their culture and values and how they are going to be of service to you,” he says. A quality provider recognizes that retirement plans are voluntary and employees will only enroll if they find the plan attractive, Mee says. When researching providers, industry experts say it is important to keep the following qualities and features in mind.
Generally speaking, the process of selecting a new provider begins with the Request For Proposal (RFP), a series of questions posed by the plan sponsor to a service provider. The RFP should address the provider’s services and level of commitment and experience, among other things. It can help the plan sponsor begin to sense how potential providers’ capabilities match up with the company’s needs.
An RFP is important in searching for a provider and is helpful in gauging cost, but Dan Hall, vice president of retirement plan sales at The Standard, cautions that it misses many nuances that plan sponsors should consider. “RFPs are great—we love them. But we’re not crazy about decisions being made [solely] from an RFP,” he says.
Therefore, after an RFP is conducted, plan sponsors usually bring in a sampling of vendors that have been determined to meet the company’s needs, for a finalist presentation or in-person interview. Joel Mee, director of retirement plan sales operations at The Standard, says a plan sponsor cannot assess a provider’s values and the type of relationship they would share without a face-to-face meeting. “To make a really good, solid choice, you need to go beyond the RFP and interview the provider [to] understand their culture and values and how they are going to be of service to you,” he says.
A quality provider recognizes that retirement plans are voluntary and employees will only enroll if they find the plan attractive, Mee says. When researching providers, industry experts say it is important to keep the following qualities and features in mind.