Defined contribution plans are a critical source of retirement income for employees. As companies have changed their defined benefit plan strategy to freeze their pension plans, defined contribution plans are often the only additional retirement income source outside of Social Security and personal savings.
Defined contribution plans are unique because they are largely the only benefit program that requires participants to pay administration expenses (directly or indirectly). Additionally, many clients are highly reliant on their defined contribution administration providers as the primary source of financial education for their participants.
In recent years, the industry has become overwhelmed with financial issues including fee transparency, overcharging due to inaccurate headcounts, and various conflicts of interest.
For corporations with a fiduciary responsibility for defined contribution plan oversight, an independent and objective firm like Curcio Webb will help ensure you are receiving good value – while fulfilling your obligation to perform due diligence on behalf of your stakeholders and employees.
It is important to consider whether it is prudent to undertake a focused renewal with your current provider or consider a search for a new provider. It is sensible to consider any changes at least 18 months prior to the end of your current provider contract. We recommend you start by downloading the Search vs. Renewal Checklist that provides more details about your options.
Working with Curcio Webb
Curcio Webb assists our clients with defined contribution administration projects in several ways:
- Searching for a new defined contribution administration provider.
- Renewing administration service agreements, while ensuring clients receive competitive contract and financial terms, meaningful performance standards, and appropriate service scope.
- Helping clients determine the role of advice, managed accounts, and financial wellness within the overall service offering.
- Auditing information provided by service providers’ advisors (advice provided via phone and in-person).
- Leading or assisting with the implementation.
- Performing operational reviews comparing how administration and data are working relative to requirements.