Consulting Services
RFP Plan Benchmarking, Fee Analysis, & Optimization
Designing a Request for Proposal (RFP) and benchmarking procedure for 401(k) providers is crucial for selecting the best service provider for your plan. Here are some topics for consideration. If you have any questions concerning the following topics, please schedule an appointment to discuss.
Define Objectives and Requirements
Identify the goals and requirements of your 401(k) plan, such as investment options, plan features, participant services, administrative support, and pricing structure. Determine the key criteria that will drive your selection process.
Develop RFP Document
Create a detailed RFP document outlining the scope of services, evaluation criteria, timeline, and submission instructions. Include questions and requirements related to plan administration, investment management, participant education, compliance support, technology capabilities, and provider qualifications.
Identify Potential Providers
Research and identify potential 401(k) service providers that meet your criteria and can meet your plan’s needs. Consider factors such as industry reputation, expertise, service offerings, technology solutions, and pricing.
Distribute RFP
Distribute the RFP to the selected providers, ensuring clarity regarding deadlines, submission requirements, and contact information for inquiries. Allow sufficient time for providers to prepare and submit their proposals.
Evaluate Proposals
Review and evaluate the proposals received from providers based on predetermined evaluation criteria. Consider factors such as experience, financial stability, service offerings, pricing, technology capabilities, investment options, participant education resources, and compliance support.
Conduct Provider Presentations
Invite shortlisted providers to present their proposals and capabilities to the selection committee. Use these presentations to clarify any questions, assess the provider’s expertise, and evaluate their fit with your organization’s needs.
Perform Due Diligence
Conduct thorough due diligence on the shortlisted providers, including background checks, reference checks, and reviews of regulatory filings and disciplinary history. Verify the provider’s credentials, reputation, and track record of service quality.
Negotiate Contracts
Initiate contract negotiations with the preferred provider(s) to finalize terms, pricing, service levels, and other relevant provisions. Ensure that the contract reflects the agreed-upon terms and protects the interests of your plan and its participants.
Implement Transition Plan
Develop a transition plan in collaboration with the selected provider to facilitate a smooth transition from the existing provider, if applicable. Coordinate the transfer of plan assets, participant records, and administrative responsibilities according to the agreed-upon timeline.
Monitor Provider Performance
Monitor the performance of the selected provider(s) on an ongoing basis to ensure that they deliver the promised services and meet the needs of your plan and its participants. Establish key performance indicators (KPIs) and conduct periodic reviews to assess provider performance and address any issues or concerns promptly.
Benchmark Provider Services
Periodically benchmark the services, fees, and performance of the selected provider(s) against industry standards and best practices. Use benchmarking data to evaluate the competitiveness of the provider’s offerings and identify opportunities for improvement or cost savings.
Review and Update RFP Process
Conduct a post-implementation review of the RFP process to identify lessons learned, areas for improvement, and opportunities to enhance future provider selection efforts. Update the RFP process as needed to incorporate feedback and improve efficiency and effectiveness.
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