Position Yourself For Success: Retirement Plan Review Best Practices

Some financial advisors believe they should create their own custom plan reviews. The downside to that approach is that it is labor-intensive. When you partner with a service provider that offers a high-quality plan review, the data collection and reporting are generated for you. This is welcome news, especially for financial advisors who are new to the retirement plan market or who may not have the time and resources to create their own plan reviews.

The value you bring to the retirement plan review is your insight and interpretation of the data it contains. Your knowledge of the financial markets, the industry, and your client’s goals and objectives for the plan put you in a unique position to: (1) focus the discussion on key issues; (2) identify opportunities for plan improvement; (3) suggest plan design or investment changes to enhance the plan’s success; and (4) discuss ways to improve participation and deferral rates through employee education and/or a change in plan provisions.

Conducting a successful meeting

The keys to a successful plan review meeting are planning and partnership. Both preparatory and logistical advance planning are needed, in addition to the assistance of your service partner to cover the basics, so that you can focus on strategy and recommendations.

Plan ahead. Work with your client to set a date for the review meeting. Be sure the decision-makers and retirement plan committee members are in attendance. Create a written agenda and send it to the client in advance. Be sure to address specific topics of special interest to your client.

Be prepared. Read the retirement plan review before the meeting date and identify specific items to focus on. Prepare a thoughtful explanation for potentially confusing or negative information. Draw conclusions based on the data that you can present to the client for discussion at the meeting. Research key retirement industry trends and current or pending legislation.

Use a team approach. Include your service provider in the meeting. Meet in advance to discuss the agenda, your expectations, what you want your service provider to cover in the meeting and what you will cover. You will not likely have sufficient time to go through the entire plan review document, so decide in advance what to cover from each section and whether you will skip any sections. Be sure to discuss new services or enhancements to existing services offered by the plan provider that the sponsor may want to consider.

Be your client’s consultant. Sit on your client’s side of the table as your service provider goes through the plan review sections. Ask questions about the data that your client may not know to ask. Point out plan activity trends and possible issues that need resolution.

Close with actionable steps. Make specific recommendations for your client’s consideration. If possible, obtain approval from the decision-makers to proceed with action steps. Remind your client to keep a copy of the retirement plan review for fiduciary documentation purposes.

Creating an opportunity to increase client satisfaction

The retirement plan review is an opportunity for you to demonstrate your value-added expertise to your clients and prospects. By following best practices and partnering with your service provider, you can position yourself as strategic consultant, offering insightful and actionable recommendations that contribute to the success of your clients’ plans. Perhaps most importantly, offering your clients a retirement plan review at least annually can significantly increase client satisfaction.

Mary Sanderson is vice president and director of client management for Transamerica Retirement Services, the marketing unit of Transamerica Financial Life Insurance Co., Purchase, N.Y. She can be reached at [email protected].