PLANADVISER - November/December 2022 - 31
with plan attributes and statements of work. Full benchmarking
requests for proposals should be conducted every
five years-no exceptions. But those are the table stakes.
" We segregate recordkeeping from asset management,
target-date funds, stable value funds and managed
accounts, " he says. " Many firms won't get that granular, but
you really do need to. If we see a plan move more than 25%
plus or minus, that will also trigger a discussion. If you have
a major workforce reduction, for example, it's worth starting
a dialog with the vendor about fee arrangements so those
are in line with the new smaller plan. If you aren't breaking
these things out and staying on top of changes, you could
risk a claim. "
Firms such as RPS and Institutional Investment
Consulting work to be as comprehensive as possible in
terms of what their fee arrangements include. Webb says,
whether it is a flat fee or a more customized pricing structure,
the quotes his firm provides are essentially all-in fees
based on the requirements of the plan at that time.
Still, the combination of price sensitivity and growing
complexity can make it difficult to stay competitive while
still being profitable. That reality affects adviser firms of all
sizes. Holly Verdeyen, partner and U.S. defined contribution
leader in consulting firm Mercer in Chicago, observes that
the benchmarking process will continue to require more
resources, to keep up with ever-increasing offerings of new
plan features. " Over just the past few years, we've seen new
product innovations, " she says. " For example, within target "
Firms are taking a closer
look at what is included
in their fees and in some
cases choosing to break
up services into tiers ... "
date funds, you see more customization of the glide path, so
that adds a layer of complexity to a benchmarking study. Or
on issues such as cybersecurity that are constantly evolving,
it requires substantial engagement to stay on top of best practices
and be able to evaluate a plan within a broader context. "
Taken together, all of these factors require advisers to
continually improve capabilities and have resources in place
to be able to provide solid and fairly priced services. At one
level, sources say, these trends are helping to drive consolidation
so firms can capitalize on economies of scale. At
another level, they are also leading some firms to decouple
services as they look for sustainable sources of revenue.
Paying for Success
Innovation in the retirement space is not just leading to
new menu offerings such as customized TDFs, as Verdeyen
notes. It also shows up in add-ons such as financial wellplanadviser.com
November-December 2022 | 31
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PLANADVISER - November/December 2022
Table of Contents for the Digital Edition of PLANADVISER - November/December 2022
Built to Last
Cyber Ready
Measure Your Footprint
Determinants of Profitability
Keep a High Profile
Strategic Moves
The Value of a VCOC
Retroactive Compliance Reviews
Sheri Fitts
PLANADVISER - November/December 2022 - Cover1
PLANADVISER - November/December 2022 - Cover2
PLANADVISER - November/December 2022 - 1
PLANADVISER - November/December 2022 - 2
PLANADVISER - November/December 2022 - 3
PLANADVISER - November/December 2022 - 4
PLANADVISER - November/December 2022 - 5
PLANADVISER - November/December 2022 - 6
PLANADVISER - November/December 2022 - 7
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PLANADVISER - November/December 2022 - 11
PLANADVISER - November/December 2022 - 12
PLANADVISER - November/December 2022 - 13
PLANADVISER - November/December 2022 - 14
PLANADVISER - November/December 2022 - 15
PLANADVISER - November/December 2022 - Built to Last
PLANADVISER - November/December 2022 - 17
PLANADVISER - November/December 2022 - 18
PLANADVISER - November/December 2022 - 19
PLANADVISER - November/December 2022 - 20
PLANADVISER - November/December 2022 - 21
PLANADVISER - November/December 2022 - Cyber Ready
PLANADVISER - November/December 2022 - 23
PLANADVISER - November/December 2022 - 24
PLANADVISER - November/December 2022 - 25
PLANADVISER - November/December 2022 - Measure Your Footprint
PLANADVISER - November/December 2022 - 27
PLANADVISER - November/December 2022 - 28
PLANADVISER - November/December 2022 - 29
PLANADVISER - November/December 2022 - Determinants of Profitability
PLANADVISER - November/December 2022 - 31
PLANADVISER - November/December 2022 - 32
PLANADVISER - November/December 2022 - 33
PLANADVISER - November/December 2022 - Keep a High Profile
PLANADVISER - November/December 2022 - 35
PLANADVISER - November/December 2022 - Strategic Moves
PLANADVISER - November/December 2022 - 37
PLANADVISER - November/December 2022 - The Value of a VCOC
PLANADVISER - November/December 2022 - Retroactive Compliance Reviews
PLANADVISER - November/December 2022 - Sheri Fitts
PLANADVISER - November/December 2022 - Cover3
PLANADVISER - November/December 2022 - Cover4
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