How Do You Know When You Need a New Pension Administrator?
Selecting the right pension plan administrator for your company is critically important. It takes time and patience to initiate your search, conduct your due diligence, and ultimately to make the right choice.
Making a change of administrators can be an equally tough decision, especially since much time might have been expended in the initial selection process.
But sometimes change is necessary.
Here are five red flags that suggest a change should be considered before (further) damage is done:
1. As a business owner you know that being accessible is integral to your success. Perhaps you have had the unfortunate circumstance of working with an unresponsive business resource. (We know how quickly that person or firm becomes an “ex” resource.) If you find that you must make multiple calls or send countless emails just to get in touch with your administrator, it might be time to go elsewhere. A speedy response is part of the commitment between client and service provider.
2. You find that your pension administrator can’t answer your questions. This knowledge gap can lead to costly penalties; after all, you should expect that they are current on all of the recent legislation. If you see that you are researching information on your own, I suggest you start to look for another firm. (An important screening question is to find out about their continued requirements for their staff.)
3. Your employees have some important questions about the plan, and you’d like your administrator to come in and hold a town hall meeting or “lunch ‘n learn.” Sounds simple enough, however you just can’t seem to pin down a date. The weeks are passing by and the employees are less than happy about the situation, not to mention your HR manager is catching heat too. Time to make a switch? I think so.
4. You seem to be out of sync. The firm that is handling your pension usually works with much larger or smaller companies. Whatever the situation, you feel like there is a great disparity between your needs and their “typical” client. You know the old saying, “Trying to fit a round peg into a square hole,” just won’t work. Start to search for a firm that is the right size for you!
5. It’s possible that you didn’t spend much time selecting your current pension administrator, and in this case what you don’t know can hurt you. There’s no need to settle; after all, it’s your future that we’re talking about.
I hope that you’ll take these “warnings” to heart. There’s no reason to feel dissatisfied by something – or someone! – you don’t want. And while I know it was probably difficult to select your current pension administrator, you shouldn’t stay with a firm just because of fear of change. In this situation I think you’ll discover that you wish you had done it sooner.