Case Study: Vendor Management

Situation:

The executive committee of a for-profit enterprise maintains an active policy of vetting their retirement plan service providers once every four years. The plan fiduciaries also assess the service qualities and fee amounts and arrangements annually to determine the value of the services on behalf of its employees.

While their current recordkeeper, TPA, and custodian had retained their position through previous proposal projects, the committee recognized the need to select a provider that could demonstrate greater value in the areas of fiduciary risk assurance, fee transparency, employee education, and communication, scope of administrative support services, contractual accountabilities, and investment fund independence.

The committee implemented a supply chain management process based on industry best practices and ERISA’s cost and service evaluation rule. The objectivity of the campaign led to the selection of a collection of new service providers in each servicing category.

The new providers agreed to the client’s requirements, which it dubbed “the supply chain management system.” While the selection process was completed for the executive committee, the work really began as the need to ensure that the participants’ and plan sponsor’s interests were served as a priority above those of the providers’.

Approach:

Roland|Criss:

• Independently assessed and researched the provider candidates with its unique ERISA vendor management approach, which ranks candidates in two categories…vendor fit and service fit.
• Leveraged the client’s executive committee and administrative team’s time, expertise, and budget to realize significant increases in service quality and reductions in participant and corporate expenses.
• Established the conversion timelines and budgets, and administered all aspects of the plan conversion process and service provider accountabilities.
• Ensured that the provisions of the fee disclosure regulations and other fiduciary and fiduciary-support responsiblities were clearly articulated and accepted in the service agreements.

Result:

Roland|Criss helped the client independently manage the search, selection, and conversion of the fiduciary supply chain; thereby enhancing overall service level quality, discharging liabilities, and reducing and controlling participant and corporate expenses for plan administration.