At a TPSU (The Plan Sponsor University) program held at Bentley University, a practice administrator for a doctor’s office found that transitioning her plan led to greater insights and a better plan as a result. Though she wasn’t sure what to expect, she relied on her accountant and advisor to help and she was able to learn as the process progressed. Now she feels better equipped to manage her company’s 401(k) plan and participants appear more engaged.
Sometimes we don’t change things if it’s not broken, especially if we are busy with other things that seem more important. But neglect and denial can be very dangerous especially when you have a nagging feeling that something is not right and you should act. These feelings are very common for HR and finance professionals when it comes to their defined contribution (DC) plan, as they usually have ten other responsibilities and the DC plan rarely is at the top of the list.
Everything starts with the plan advisor. According to 2015 research by Fidelity, 84% of plans with 25-10,000 employees use an advisor. Yet only one-third have a really experienced DC plan advisor – even less for companies with 500 or fewer employees. Finding a good advisor is not easy nor is conducting a search which is why 401kTV provides users with an advisor directory which includes professionals that have received training from TRAU, a collaboration with UCLA Anderson School of Management. In addition, there’s a service to help employers conduct a formal search for an advisor on 401kTV.
Before her transition, the practice administrator at the Bentley TPSU program wasn’t sure of her role and how to best utilize the resources at her disposal. Now she is more comfortable directing her employees to the plan’s advisor with questions and she plays a larger role in managing the plan with the help of the new record keeper.
Sometimes, when we embrace what we don’t know, good things happen and when we do things we are putting off, we feel better. Work with your advisor to see if change is in order for your DC plan.
