Is It Real, Or Is It Memorex

By Tobi Cogswell

Have you ever noticed how Bundled Providers speak to clients as if they’re reading from a gospel? In their world, everything seems so rigid and matter-of-fact. They’ve been known to adopt document provisions on behalf of your clients -- and not even inform your client of the elections that were chosen. Bundled Providers seem to do it their way.

But, what about your clients’ preferences? What’s best for them? Who should decide?

Here’s an example that helps make the point:

You have a client whose plan has an Automatic Contribution Arrangement. The plan document has the provision that participants can opt out within 90 days of their first deferral.

The notice prepared by the bundled provider states: “If you process any fund exchanges, loans or withdrawals within your account, you are no longer eligible for this withdrawal”

And, here is the critical point. Did they talk to your client about this? My guess is no. Was this approach in the plan document? Not likely. Is this provision in the law? No. It isn’t.

Protect your clients.
This is exactly why you and your clients need to partner with a consultant who will keep their interests at the forefront, and who will design and administer a plan that meets their needs. We may ask them some tough questions, like “why did you want this plan in the first place?” and “what do you want to accomplish with it now?” That will enable us to design, or re-design a plan that’s strong, flexible, attractive to their employees and something we all can be proud of. Something that will meet the needs of your clients now and as their businesses evolve.

We’re advisors. Your client is the boss. They should get what they need!

Now is the perfect time to talk to your clients about unbundling their administration and moving the compliance to ACI. They deserve to work with a firm that’s pro-active and always focused toward them. Our goal is to save them money and let them concentrate on doing what they do best – running their own businesses.

Call us before they pay for another year of average work.

Tobi Cogswell

Director, Consulting Practice

(310) 212-2623

Do It Right The First Time

-By Tobi Cogswell

We recently took over two cases from another Third Party Administration firm. We got these cases because:

• The other firm wasn’t pro-active. Everything was done last minute or after the fact.
• The other firm did no consulting. No choices were ever discussed with the plan sponsor.
• The other firm did not look at the plan design and make changes at the same time the amendment and restatement for EGTRRA was done, thereby saving the plan sponsor some money on document costs,
• The other firm did not return phone calls!

We also took over a 401(k) plan from a different Third Party Administration firm and we got this case because:

• The other firm never discovered that a stand-alone 401(k) no longer met the needs of this growing law firm.
• The other firm never discussed the advantages of having a safe harbor 401(k) and how that would eliminate ADP test failures AND satisfy top heavy.
• The other firm never discussed the benefits of having a cash balance plan.
• The other firm never disclosed they were receiving revenue sharing from the recordkeeper.

At ACI:

• We don’t have to be taught about client service.
• We understand problem solving.
• We disclose all revenue sharing.
• We want to design plans that will grow with your business.

Tell your friends about us.

Jay Luber – (310) 212-2607 for prospect and new client issues,

Tobi Cogswell – (310) 212-2623 for prospect and new client issues, and 5500 reviews,
Jeff Esmond – (808) 389-5979 for all business in Hawaii