An article from Plansponsor in January 2015 listed several areas plan sponsors should consider when evaluating plan costs, especially when shopping for plan recordkeepers and third-party administrators. The article warns that it is important to consider the value received from service providers and not just to shop for the lowest price. The true fiduciary responsibility lies in achieving the best value for the money, not just the lowest dollar amount. Greater value might be found in a recordkeeper that charges slightly more than other service providers but provides automated reporting and participant support services, such as education and financial wellness tools, which free up time and effort of the plan sponsor and increase participant satisfaction and participation in the plan.
Is your plan considering changing service providers? What parameters are being used to choose the best provider for your plan?