Here’s another story from the vault:
Tony stormed into my office, frustration written on his face. He ran the retirement plan for his employer, and something had gone terribly wrong. I gestured for him to take a seat. “Tell me what happened.”
“David, you won’t believe the mess we’re dealing with! Our record-keeper did an overhaul of their system at the beginning of the year, and it’s been a disaster. They’ve been in business for over 40 years so we thought we were in good hands. Apparently, they decided to roll out this new system without proper testing, at least not with our TPA or our firm.”
“Let me guess what’s happening,” I suggested. “Contributions have been taking weeks—sometimes months—to get processed. Loans and distributions are delayed…”
“Yes,” Tony continued, “And their website goes down unexpectedly … and when it’s up, some participants see zero balances in their accounts. To top it off, their customer service is non-existent. I can’t get anyone on the phone!”
I shook my head. “That’s frustrating, Tony. It’s rare for a rollout to go this poorly, especially after eight months, but when it does happen, it leaves plan sponsors like you in a tough spot.”
Tony sighed. “Is this kind of thing normal, or is this an isolated disaster?”
“I’d like to think it’s a one-time event—but I get it. It’s happening, and it’s putting you in a vulnerable position, especially when it comes to fulfilling your fiduciary duty.”
Tony ran a hand through his hair. “So, what do I do? I can’t keep dealing with this, and I’m not sure where to go from here.”
I leaned back in my chair. “There’s a solution you’ll like called a 3(16) plan administration model? My firm can step into your shoes and handle the communication with the record-keeper. We know the right questions to ask, and we have the experience to deal with these issues without you needing to get involved. You can focus on running your business, and we’ll take care of making sure the retirement plan is managed smoothly and efficiently.”
Tony’s eyes lit up. “That sounds like exactly what I need. How do we get started?”
Consider the Concierge 3(16) plan administration model. Let the experts to step into your shoes and communicate directly with the record-keeper to resolve issues without your involvement while you focus on running your business.