Defined contribution (DC) record keepers have developed an enormous number of online tools for employers sponsoring a retirement plan and their employees but many professionals at the company are new and don’t realize all the resources that are available. A plan sponsor at a TPSU program held at Vanderbilt University explains how an audit made her realize the opportunities to leverage her record keeper’s online resources.
After a recent audit, the plan sponsor at a small logistics company in the Nashville Tennessee area realized that some of the reports she needed were readily available on her provider’s website. That led her to explore other online tools like employee enrollment and education which she discovers now through weekly calls with her record keeper to make sure she fully understands what’s available.
As Daniel Bryant, TPSU Adjunct Lecturer and CEO of Sheridan Road, noted, “The many services available to plans sponsors by record keepers can be overwhelming. These services change as the plan grows and it’s hard for a plan sponsor to keep up.”
Large national record keepers spend upwards of $50 million annually just to maintain their technology which does not include massive upgrades which usually occur every three-five years. Because many people managing a DC plan like a 401k or 403b are new to their job or have many other responsibilities, it’s hard if not impossible to keep up. Though conducting weekly meetings might be a good idea for a short period, it’s not sustainable for busy HR and finance professionals.
Knowing about the basics online tools and those most pertinent to their company is a good place to start with periodic refresher courses leveraging experienced and credentialed plan advisors and TPAs. And when there are big company changes, like significant growth or acquisitions, or consolidation of record keepers, which is happening more frequently as smaller providers struggle to keep up with technology investments, then refreshers about the online resources are in order.
