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
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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
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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.'
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