PLANSPONSOR Provider Scorecard
Transcription
PLANSPONSOR Provider Scorecard
PLANSPONSOR Provider Scorecard www.plansponsor.com SPACE FOR LOGO Provided to you courtesy of: John Doe, RIA Tel. (203) 123 4567 [email protected] ABC 401(k) Services Co. Inc. Client Ratings by Category (based on PLANSPONSOR 2002 Defined Contribution Survey) Participant Services Plan Sponsor Services Communication materials HHH HH HHH HHH HH HH HHH HH HHHH HHH HHH H HHHH HHH HH HHH HH HHH HH Participant education program Clarity of statements Accuracy of reporting Timeliness of reporting Loan/withdrawal turnaround Participant Internet services Participant call center Range of investment options HHHH = Top quartile HHH = Second quartile HH = Third quartile Timeliness/accuracy of contribution splits Responsiveness Timeliness/accuracy of check processing Timeliness/accuracy of trust reporting Industry knowledge of account reps Timeliness/accuracy of form 5500's Internet services for sponsor Discrimination tests Fairness of fees Fee disclosure H = Bottom quartile Of current clients, 97% would recommend ABC 401(k) Services to a colleague. Client Assessment: Are provider's fees fair? n Yes 31.0% n No 31.0% n Don't know 38.0% Editor's Comments 2002 has been a struggle for ABC —scores are below average, and comments are uneven. There is no shortage of content clients—the firm “offers superior customer service to our employees,” says one respondent; “a huge improvement over our previous recordkeeper,” says another. Client Respondent Profile: Plan Size n <$5MM Yet, not a single commendation was won this year, and 2001 was only marginally better. Investment performance is clearly an issue: ABC“offers and delivers an excellent array of services. 0.0% n $5MM–$49MM 30.3% n $50MM–$199MM 39.4% n $200MM–$499MM 18.2% n >$500MM 12.1% However, this does not compensate for an underperforming array of investment options,” says a respondent, and there is some concern about account rep tenure: “Too much turnover in staff,” says another. Editor's Awards 2002 Participant education Top Rated 2002 Plan sponsor reporting Commended 2001 Plan sponsor reporting Commended 2000 Participant education Top Rated 1 PLANSPONSOR Provider Scorecard ABC 401(k) Services Co Inc Provided to you courtesy of John Doe, RIA What clients say about ABC 401(k) Services* Please comment on your DC provider's service to the participant. "The service of our provider continues to improve and benefit our employees" Please comment on your DC provider's service to you, the sponsor. "I am very pleased with the rapport that we have established. I always receive prompt and accurate service." What could the provider do to improve the service you receive? "As far as plan sponsor service, they did that when they made Mr. Soandso our representative. ABC still has a way to go on participant service, but there has been significant improvement." Please comment on the fairness of fees: "Fees for basic client services are fair. Fees on stock transactions and dividend reimbursement are high. Expense ratio's on investments are competitive" "The website is excellent, but we need more education in the form of publications and group meetings." "The provider has set up a staff available to assist us in the day to day operation, as well as providing tools through the internet to provide information needed on a daily basis. They have really come along way to improve their operation." "Because the plan is a multi-employer plan, each employer is responsible for their portion of the bill. We only receive one bill from the provider which must be split up according to the number of participants of each employer. It would really be helpful if the provider could provide separate billing. "The situation could not be better." * Comments are a sampling of all comments received about this provider. The comments are chosen to present a balanced view of the client perspective on this provider. How do the clients rank the importance of the following characteristics of their DC provider? 1 Quality of service to participants 7 Cost/fees 2 Quality of service to plan sponsor 8 Provider's Web presence 3 Financial strength 9 Market image/reputation 4 Investment performance 10 Industry knowledge of vendor's account mgrs 5 Variety of investment options 11 Recognizable 'brand name' funds 6 Ability to provide a commingled trust 12 Industry knowledge of vendor's sales force About PLANSPONSOR: PLANSPONSOR is the premier source of information for retirement plan sponsors of both defined benefit and defined contribution plans. PLANSPONSOR's publications include PLANSPONSOR magazine, PLANSPONSOR.com, the daily NewsDash newsletter, the weekly AdvisorDash newsletter and research reports. PLANSPONSOR.com also hosts 401(k) Pathfinder, an online provider selection tool. For more information, go to PLANSPONSOR.com or email [email protected]. DC Survey Methodology: In July 2002, more than 15,000 survey questionnaires were sent to individuals responsible for their company’s DC plans. The database for sending these questionnaires consisted primarily of PLANSPONSOR readers, but also included client names supplied by DC providers. Survey responses were accepted until September 10th. A total of 2,852 usable responses were received. Providers needed a minimum of 25 client responses in order to be included in the listings. Editor's Awards: Top Rated status was accorded to providers that had average scores in the top 10% of each category. Commended status was given to providers with average scores in the next 20%. Respondent comments also were taken into consideration when determining status: A sufficiency of positive or negative comments about a particular area of service could serve to lift or drop a vendor’s ranking in the survey. This report is not a recommendation to buy products or services from any particular provider 2 PLANSPONSOR Provider Scorecard ABC 401(k) Services Co Inc Provided to you courtesy of John Doe, RIA Corporate profile (based on PLANSPONSOR 2003 Recordkeeping Survey) Total DC assets under management 36,000 Total DC recordkeeping assets 17,000 Number of DC plans serviced for recordkeeping 356 Number of DC plan sponsor clients serviced for recordkeeping 225 Total number of DC participants serviced 176 Total number of DC participants serviced for recordkeeping Number of active participants (currently employed) 567 Number of retirees 125 Number neither active nor retired, but carrying a balance 204 198 Number of new DC recordkeeping plans won in 2002 0 Number of DC recordkeeping plans lost in 2002 Client profile by plan assets? n $1 billion + 0% n $500MM–$1 billion 4% n $250MM–$499MM 12% n $100MM–$249MM 10% n $50MM–$99MM 35% n $10MM–$49MM 17% n Under $10MM 22% Plan types serviced for recordkeeping: n 401(k) 12% n 401(a) 17% n 403(b) 20% n 457 10% n Money purchase 8% n ESOP 6% n Profit sharing 5% n New comparability 16% n Age-weighted 3% n Non-qualified 2% n Other type: 0% Client profile by plan participants: n 10,000+ participants 1% n 5,000–9,999 participants 8% n 1,000–4,999 participants 12% n 500–999 participants 20% Account/customer service staff locations n 100–499 participants 31% Toledo, OH n Less than 100 participants 28% Boston, MA Cedar Rapids, IA Within DC recordkeeping plans, Percentage that are daily valuation 38% Percentage that are traditional (balance forward) 62% Minimum participant size for new accounts 12 participants Minimum plan asset size for new accounts $3 Million Other general restrictions on new accounts: o3none o restrictions listed below Number of staff members 167 Account executives/relationship managers (one-on-one with plan sponsor clients) 100 Customer service reps (one-on-one with plan participants) 3 PLANSPONSOR Provider Scorecard ABC 401(k) Services Co Inc Provided to you courtesy of John Doe, RIA Services Technology Formal partnerships with online advice providers Internet services for participants mPower 3 Account balance lookup 3 Investment education 3 Integrated DB/DC reporting 3 3 Loan initiation 3 Savings calculators 3 3 Beneficiary changes 3 Financial Engines 3 Morningstar Other: % of plan clients offering advice to participants: 45% Other financial advice vehicles offered to participants: yes 3 3 3 3 In-person seminars Personal rate of return Online enrollment Distributions Deferral changes Transfers/re-allocation Others: Withdrawals Access to Financial Advisors 3 Loan modeling Post-retirement financial advice Additional charge for any of the above services: o yes o3 no Other: Available to all clients: o3yes o no Self-directed brokerage windows/online brokerage: o yes If no, what limits are imposed: 3no o Internet services for plan sponsors Offered through: Percentage of clients offering this feature to participants: 3 Plan summary info n/a Multi-lingual participant communication: o3yes Customized reporting 3 Account aggregation 3 Plan demographics 3 Compliance testing o no If so, in what format? o3Written o3In-person presentations Other: Contribution transmissions Languages offered (other than English): 3 Vesting information 3 Spanish Additional charge for any of the above services: o3yes o no Chinese Available to all clients: o3yes o no Japanese If no, what limits are imposed: Other: Offering assistance with: Alliances 3 Form 5500 reporting/filing Restrictions with regard to any particular fund families: Trustee services 3 ADP/ACP testing 3 Plan design 3 Payroll services Fidelity Investments. State Street Global Advisors Employee education Proprietary fund requirements: o yes o3 no Actuarial services Services offered for plan sponsors: 3 Unbundled/recordkeeping only 3 Bundled 3 Total Retirement outsourcing Lifestyle/asset allocation funds offered: n/a Unbundled/investment only 3 Individual (k) Offering automated rebalancing of participant accounts Revenue sharing with alliance partners: o3yes o no to maintain designated investment direction percentages: If so, are arrangements fully disclosed to plan sponsors: o3yes o3yes o no o3Monthly o3Quarterly o3Annually o no Services for Section 529 College Savings Programs: Frequency of rebalancing: o Other: n/a Note: The above data were supplied by the provider in the Spring of 2003. PLANSPONSOR is not responsible for errors or omissions. Where providers chose not to answer a question, the space after that question is left blank or shows 'n/a.' 4