The retirement plan industry is evolving rapidly. With ongoing mergers among recordkeepers, there’s sometimes a drop in service quality for both plan sponsors and participants. If you’re involved in managing a retirement plan, it’s crucial to regularly assess whether your provider continues to meet your needs and supports your participants’ retirement goals. Here are some key factors to consider when evaluating your retirement plan's recordkeeper:
Service Matters
Proactive Support: Does your recordkeeper take the lead in communication, or are you always the one reaching out? When questions arise, do you get direct access to your account manager or a call center? Strong relationships thrive on open, proactive communication. Regular outreach from your service team shows they’re committed to delivering high-quality support.
Ownership: Does your recordkeeper take responsibility for mistakes? Occasional corrections are normal, but repeated errors or blame-shifting may signal weak systems and poor processes.
Easy Access: Can you easily access key plan information and reports? A good recordkeeper should make participant and plan data simple to find and readily available when needed.
Knowledge: How knowledgeable is your recordkeeper’s service team? Do they have the right training and experience, and how long have they worked with your plan? A strong team should understand the provider’s offerings, stay current on industry trends, and deliver services tailored to your workforce. Consistency matters – it builds familiarity with your organization and its goals. Turnover happens, even in the best firms, but what’s the back up plan if your team is unavailable?
Dependability: Is your recordkeeper truly invested in the business? Are recordkeeping services a core focus for their organization? With frequent mergers disrupting the industry, it’s critical to know whether your provider is committed to ongoing investment in technology, innovation and skilled personnel to meet and exceed industry standards in the long run.
A dedicated, consistent service team builds deep familiarity with your organization and its retirement plan – creating stronger support, fewer mistakes and a partnership that truly understands your goals.
Quality Product
Inclusivity: Does your recordkeeper offer resources that work for everyone in your plan? Participant communications, educational materials and websites should be designed to serve a diverse workforce – including participants with different accessibility needs and those who speak languages other than English.
Accuracy and Speed: Is your recordkeeper keeping plan data accurately and processing transactions promptly? Delays don’t just frustrate participants – they can also lead to compliance issues that put your plan at risk.
Investment Options: Does your recordkeeper provide an open architecture platform with broad investment choices? Watch for hidden fees tied to proprietary funds. Make sure the options you need, now and in the future, are available, such as target date funds, self-directed brokerage windows, and lifetime income products.
Cybersecurity: Has your recordkeeper taken steps to protect against fraud and cyber threats? Is your recordkeeper using safeguards like multi-factor authentication and advanced security software? Look for solid security practices and use of advanced security tools. These measures show they take cybersecurity seriously.
Fee Transparency: Does your contract clearly outline the cost of each service? Some proposals assume fees will be covered through revenue sharing, proprietary investments, or other add-ons. Ask for an itemized breakdown that shows all costs clearly.
The retirement plan industry is undergoing a wave of recordkeeper mergers right now – and these changes can significantly impact the quality of service and products you rely on.
The Bottom Line
If you’re left with more questions than answers after reviewing these points, it might be time to explore your options. You can start with a “Request for Information” (RFI) or go deeper with a “Request for Proposal” (RFP) to find a better fit. For more information about how PNC can help with recordkeeper evaluations, please reach out to your PNC Retirement Plan Advisor.
PNC IAM combines large-scale resources with a personal commitment to help your organization be ready for today, and tomorrow. To explore our offerings, contact your PNC representative.
