Vendor Selection Process

The Search for a new vendor can be confusing, time consuming, and overwhelming. Since we thoroughly understand the industry, vendors, investments and the fees charged, we will facilitate the entire process from collecting proposals ( The “RFP” Process); attending vendor presentations; conducting site visits when warranted; and evaluating and analyzing the proposals. We use a specific set of criteria to narrow down the field of finalists before presenting those candidates to our clients. The criteria is as follows:

COMMITMENT & REPUTATION

• How many total 401(k) plans do they have;
• IN THE INDUSTRY How many 401(k) plans do they have in your size, demographic group, industry;
• What is the average size account that they have as far as assets and number of participants;
• What is their client retention rate and when clients terminate what is the reason given;
• How many plans have they added over the last two years (to determine whether they are players in the marketplace);
• What is their Financial Strength, Assets under Management, Pending Litigation, Recent Mergers and/or Acquisitions; and
• Determine their viewpoint as to where they see themselves in 3 and 5 years.

INVESTMENT OPTIONS

• How many total funds may a client select from;
• How many funds are offered on the fund menu and what limitations are placed on the number of funds that can be offered;
• Is there a vendor fund proprietary requirement;
• What outside fund families are available;
• Are there Index Style funds available;
• Are there Specialty Funds Available (ie: Technology, Utilities, Socially Responsible Funds);
• Are there Lifestyle Funds available;
• Is there a process which will allow for the addition/deletion of funds; and

COMMUNICATION & EDUCATION

• Do they have a dedicated Service Representative on the account;
• Will they handle the enrollment process;
• What kind of a re-enrollment process do they have;
• Do they offer seminars for the employees;
• What kind of education materials do they have available;
• Do they customize the materials; and
• Will they meet with employees on a one-on-one basis if necessary.
  

ADMINISTRATION

• Are they a Daily Valued Plan;
• Are they bundled or “unbundled”;
• Do they get the 5500 signature ready;
• How often do they perform discrimination testing;
• Does the discrimination testing come with recommendations if you fail the testing;
• Do they prepare a SAS-70 Report for an IRS Limited Scope Plan audit;
  How are contributions remitted;
• Can they be paper-less;
• How do they gather the year-end information from the client;
• What is the Conversion Process (mapping, cash, etc.); and
• How long does it take to complete the Conversion Process.

TECHNOLOGY

• Do they have full internet capabilities;
• Can they make transfers 24/7;
• Do they have the ability to offer a Self-Directed Brokerage Account;
• Do they have the ability to offer On-line Investment Advice;
• Do they have statements on demand;
• Do they mail participant statements to the participants home; and
• What services/technology do they provide that is superior to others in the industry.

FEES

• Do they charge asset fees? If so, in what increments are the fees decreased as the assets grow;
• What is the average Investment Management Fee;
• What is the Plan Installation Charge;
• What are the Annual Charges;
• Are there Loan Fees;
• If applicable, what are the Self-Directed Brokerage Account Fees;
• What would the applicable trade costs be;
• Do they compensate the Representative/Consultant, or does the client have to pay for that cost separately;
• Are there any plan Contract Termination Fees; and
• What are the Distribution Fees.