Selecting & Monitoring Service Providers
As a plan sponsor, your fiduciary responsibility isn’t to find the “perfect” or cheapest service provider; it’s to follow a prudent, documented process for selecting and monitoring providers. “Service Provider” includes record-keepers, TPAs, custodians, consultants, and other vendors that support your retirement plan.
Following a thorough process helps ensure services meet plan needs, fees are reasonable, operations run smoothly, and fiduciary obligations are met. Advisors play a key role in guiding sponsors through this process, providing expertise, benchmarking, and documentation to support informed decisions.
Needs Assessment & Service Mapping
Identify your plan’s current and future service requirements, at both the plan and participant level, to ensure vendor solutions align with your goals.
Qualitative & Quantitative Benchmarking
Evaluate multiple providers side by side on service quality, technology, compliance, and participant experience, not just cost.
Fee Evaluation & 408(b)(2) Disclosure Review
Analyze all compensation and potential conflicts to confirm arrangements are reasonable and documented.
Due-Diligence Support & Documentation
Maintain an ERISA-compliant record of evaluations, decisions, and supporting rationale.
Ongoing Monitoring & Reassessment
Periodically review service quality, fees, compliance, and participant satisfaction, recommending changes when needed.