Relationship Management Key to Recordkeeper Success

August 10, 2012 ( - Defined contribution (DC) plans with more than $5 billion in assets are much more likely to stay with the same recordkeeper for at least seven years, new research has found.

There is likely to be a lot of search activity over the next two years, but much of it will be only a method of benchmarking pricing, according to the report “The State of Large and Mega Defined Contribution Plans: Investment Innovation and the Plan Sponsor Perspective” from Cerulli Associates.

Cost is the most important factor for plan sponsors when selecting a recordkeeper, but the relationship management team and technology are likely to be the deciding factors. 

Recordkeepers should take care to make sure that the relationship management team connects with the plan sponsor during the finalist presentation.  Technology can provide the “wow” factor that ultimately wins a plan, Cerulli says.  

The report also suggests recordkeepers demonstrate their proficiency in administering other retirement plans or benefits as there seems to be an increased appetite for bundling administration for multiple benefits with one provider. This is an opportunity to cross-sell services.