We are excited to share that our firm can enhance your 401(k) service provider evaluation process with our scorecard-style rating system.
The DOL states that fiduciaries need to ensure that fees paid to service providers are “reasonable” in light of the “level and quality” of services provided[1]. How can fiduciaries realistically determine the reasonableness of fees without some measure of service quality? With our 401(k) Service Provider Scorecard, fiduciaries are equipped to evaluate the reasonableness of fees relative to the “level and quality” of services being considered.
We created our scorecard and rating system to offer a Consumer Reports like experience of providing consumers with “ratings” based upon “independence and impartial judgment”. Just as Consumer Reports aims to provide consumers with unbiased product reviews, we aim to provide plan fiduciaries with impartial evaluations and ratings, empowering you to make informed decisions for your 401(k) plan’s future.
This service is not for those looking for a short-cut “benchmarking” report. Our service is designed to help fiduciaries engage in a thorough, deep-dive, prudent process to evaluate plan service providers. We place a special emphasis on judging the “level and quality” of services being considered based upon our investigation into how well each prospective service provider performs their service elements. We then assign a rating that reflects our assessment of the best-fit match of their service capabilities to your service needs.
The result?
A comprehensive and customized best-fit “rating” of service providers making it easy for you to differentiate between market hype and real-world service deliverables. Our ratings spotlight those providers excelling in areas important to you. It’s not just about fees; it’s about the value proposition. Sure, a low fee might catch your eye, but does it align with your service requirements?
We operate on a fee for project basis. Chip Hunt, one of our experts, formerly in the recordkeeping and administration business for retirement plans, leads the charge. With years of experience, we understand the stark differences in service quality among providers… they each have their strengths and weaknesses. The key to a good decision is identifying service providers whose strengths match your needs.
[1] Refer to https://webapps.dol.gov/elaws/ebsa/fiduciary/q4g.htm