There are plan sponsors who treat every request from their retirement plan provider like a fundraising letter from their college. They see it, they ignore it, and they hope another reminder won\u2019t arrive. Then a deadline approaches, and suddenly the provider is supposed to perform a miracle.<\/p>\n
I understand that running a business is difficult. Business owners have employees, customers, and bills competing for their attention. However, sponsoring a retirement plan comes with responsibilities. Hiring a third-party administrator doesn\u2019t eliminate the need to answer questions, provide accurate information, sign documents, and make required contributions.<\/p>\n
Some providers respond to an unresponsive client by working harder. They send twelve emails instead of six. They call the owner, the office manager, and the accountant. That dedication is admirable, but it can become a business model where your worst clients consume the most time while paying the same fee as everyone else.<\/p>\n
You need a process. Requests should identify what you need, when you need it, and what happens if the information doesn\u2019t arrive. Document your follow-up efforts. Escalate unresolved issues to the appropriate person. Make sure your service agreement accurately describes the client\u2019s responsibilities and the limits of your services.<\/p>\n
Documentation helps establish what happened, but it doesn\u2019t magically solve an ongoing problem. If a sponsor repeatedly ignores serious issues, you need to evaluate whether continuing the relationship makes sense. That decision should include your contractual obligations, outstanding work, and an orderly transition.<\/p>\n
Providers often worry about losing revenue. They should also worry about the staff time, frustration, and exposure associated with clients who refuse to cooperate. A client can pay every invoice and still be bad business.<\/p>\n
You should care about every plan you service. You just can\u2019t supply the cooperation that the sponsor refuses to provide. Caring harder won\u2019t make that happen.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" There are plan sponsors who treat every request from their retirement plan provider like a fundraising letter from their college. They see it, they ignore it, and they hope another reminder won\u2019t arrive. Then a deadline approaches, and suddenly the … Continue reading