It was nearly an even split between those who said “yes, completely” (44%) and “somewhat, but there’s room for improvement.” Eight percent of readers indicated they are not happy with their retirement service provider.
Asked which area of service they were the most satisfied with, the top answer was “help with reducing my administrative burden” (28%), while “help with fulfilling my fiduciary responsibilities” and “participant services” tied for second at 24% each. Eight percent indicated they were most satisfied with “plan sponsor services” and 4% chose “employee education and communication.”
“Other” responses included:
- I am most happy with the “total package” — administrative services, low fees, investment options and performance, and plan sponsor services.
- Their effective participation in our problem solving for both employee and administrative issues.
- actually, they don’t do a lot of any of this – but the funds are good, reasonably priced, diverse, and – NOBODY complains!
Responding NewsDash readers seem overall satisfied with their providers as 72% indicated they have had a relationship with their provider for more than five years; 16% for three to five years; and 12% for one to three years.However, verbatim comments indicate providers need to stay on their toes. Editor’s Choice among verbatim comments goes to “My loyalty is to my participants, not my provider. We’re doing a RFI soon and if it indicates we should move, we will. Sometimes I think, as plan sponsors, we develop such a good working relationship with our provider team, that we might feel a tug there. But ultimately, I’ve got to look out for my participants. If the grass really IS greener, we should take action.”
We have been making improvements to the plan and moving more to the vendor, and it has taken longer, and has been more difficult than I would have liked. At the end of the project I hope that I once again will be completely happy with my retirement service provider!
My loyalty is to my participants, not my provider. We're doing an RFI soon and if it indicates we should move, we will. Sometimes I think, as plan sponsors, we develop such a good working relationship with our provider team, that we might feel a tug there. But ultimately, I've got to look out for my participants. If the grass really IS greener, we should take action.
too few people who think! they forget my participants are living, breathing people.
It is so nice to work with a provider who still knows what the term "Service" means! Always responsive, always willing to work with me on anything I bring to them...even if it ultimately ends up back in my lap...the process is followed through timely...and most importantly...cheerfully!
We are a small company but we get first class service from our 401(k) plan service provider. It's all about the service they offer & how they respond to our requests.
Integration with payroll service and ability to design low-cost, quality investment fund lineup are biggest advantages
the best way to describe it is - the only comments I get about our plan are compliments or people telling me that they thought they had an issue but our administrator resolved/explained it.
Accessibility to reps that actually listen and find answers is important. Any firm can set up a "system"; one that doesn't force you to figure everything out on your own is far above the norm.
Our plan sponsor is always willing to explore new ideas and options for our plan as well as ways to make it better and more beneficial to our employees.
We are issuing an RFP this year for retirement plan services.
Our retirement plan service provider is very customer oriented and provides a constant stream of employee education and communication materials.
As they try to streamline all customers into computer only services, our satisfaction goes down. Service providers need to still individualize their services to keep customer's happy. They also need to remember not all customers have a computer or should I say a working computer in this day of computer viruses. They also need to remember less educated and older participants want paper and U.S. Mail versus online and email only communications. Last week our service provider had a webinar that they only communicated about online. Only 6 out of 2070 employees participated.
The Chatham survey, like the annual DC survey PLANSPONSOR puts out every year always finds a lot of contented campers. Maybe that's a fair assessment, maybe not. But in my experience, both as a plan sponsor, and in working with plan sponsors, I find that most don't know what they're "missing"...
Working with most service providers is like marrying your high school sweetheart... You're happy enough, but you're not completely sure something better isn't out there...but you're afraid of the expense of the "divorce"
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