Service Provider Search & Selection
Conducting a vendor search can be a detail-laden, time intensive process that takes up to six months to complete. If the vendor search results in the selection of a new vendor, the conversion can disrupt the norm and create anxiety. Why would a plan sponsor actually volunteer to do this?
Aside from the fact that conducting a vendor search helps a plan sponsor discharge a portion of its fiduciary responsibility under ERISA, a properly guided vendor search should result in some or all of the following:
- Improved service at the plan sponsor and participant levels;
- Enhanced educational strategies and tools;
- Better investment options;
- Increased participation;
- Decreased overall costs; and,
- Increased overall participant satisfaction with the plan.
The benefits of conducting a vendor search substantially outweigh the potential short-term inconveniences. Applying some battle-tested best practices along the way will not only help mitigate those inconveniences, but also ultimately result in the selection of the most suitable vendor to the plan.
Plans can outgrow their platforms. As the demographics and needs of a plan change, it is imperative that a committee review the vendor structure of their plan. FiduciaryFirst can facilitate this process by providing insight from our database of providers or by overseeing an RFP process. We can also provide third-party fee benchmarking reports to help your committee understand how your plan’s costs compare to plans of similar demographics.