Fred Barstein, CEO & Founder, TPSU/TRAU/401kTV with Ernestine, Benefits Administrator
In today’s fast-paced digital landscape, businesses are constantly seeking ways to enhance efficiency and streamline operations. One area where automation can significantly impact organizational effectiveness is the management of 401(k) plans. As the complexities of retirement planning continue to evolve, the manual processes traditionally associated with 401(k) administration are proving to be increasingly inadequate.
Manual processing of 401(k) plans often involves repetitive tasks such as enrollment, contribution processing, and compliance reporting. These tasks are not only time-consuming but also prone to errors, which can have serious consequences for both employers and employees. From data entry mistakes to compliance violations, the risks associated with manual processes can result in financial losses and legal liabilities.
Automation offers a solution to these challenges by leveraging technology to streamline 401(k) plan management. By implementing automated systems and software solutions, businesses can automate key processes such as enrollment, payroll integration, contribution processing, and compliance reporting. This not only reduces the burden on administrative staff but also minimizes the risk of errors and ensures data accuracy.
In a recent dialogue at the TPSU program hosted by The University of Southern California, Fred Barstein, CEO and founder of TRAU, TPSU, and 401 KTV, interviewed Plan Sponsor Ernestine, a benefits administrator at the Los Angeles County Museum. Ernestine discussed the manual processing involved in their 401k and 403B plans, highlighting the challenges and errors that can arise from this process. She expressed the need for automation to streamline operations and reduce the risk of errors.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, the CEO and founder of TPSU, where we just completed a program here on campus at USC. I am so happy to be here with one of our plan sponsor attendees, Ernestine. Welcome, Ernestine. Okay if we ask you a few questions?
Ernestine:
Sure.
Fred Barstein:
Great. Before we start, tell us a little bit about yourself.
Ernestine:
My name is Ernestine. I work for the Los Angeles County Museum. Been there for two years now as a benefits administrator.
Fred Barstein:
How many employees there?
Ernestine:
We have about 450 employees.
Fred Barstein:
Wow. Okay. We talked a little bit about your concerns about manual processing. Can you tell us a little bit about what that entails?
Ernestine:
Our manual process is for our 401k, we don’t integrate our payroll with our third party. When an employee wants to enroll in the 401k or 403B plan, they go through Trans America, they enroll, sign up for their percentage or dollar amount, and then an Excel spreadsheet comes over to me to actually input the changes.
Fred Barstein:
Wow.
Ernestine:
That is such a manual process. It can cause errors. I’m only human. I try not to make any errors, but I have. I just don’t want to be responsible for the changes that the employee wants to make. I believe that we can’t automate that process if-
Fred Barstein:
It should be right?
Ernestine:
It should be automated.
Fred Barstein:
In this day and age. Right?
Ernestine:
Yeah, in this day and age. I think it’s just going to take really coming to the powers that be and sharing with them, not so much the process, they know that that can be done, but looking at the cost, if there’s any cost to it, and convincing them that this is the way we should go. Either it’s going to cost us, what it’s going to cost us, or if it’s not going to cost us anything.
Fred Barstein:
Well, it’s costing you now your time.
Ernestine:
But it’s costing me my time. Right. Yes.
Fred Barstein:
And if you make a mistake.
Ernestine:
Yes. If I make a mistake, I got to fix it. Or depending on when the mistake is caught, it can’t be fixed.
Fred Barstein:
Right. Final question, something you learned or would you recommend TPSU?
Ernestine:
Wow. Yeah, I would recommend TPSU. I learned a lot about the administrative side of the 401k. My focus in the past has been on the DB side pension, but I really wanted to come today because I’ve never been to a 403B, 401k training, and now since my responsibility is more on the administrative side, I also handle the 5500s. Today was great. It was a great learning experience for me and something that I can take and use as a foundation now.
Fred Barstein:
Great. Well, great to have you. Thank you for coming.
Ernestine:
Thank you. Thank you.
Fred Barstein:
Thank you for watching 401k TV. Please stay tuned.
