Transamerica Survey: Advisors Demand Flexibility from Retirement Plan Providers

In addition, advisors are partnering with plan providers that offer participant education campaigns which can be delivered through a variety of channels.

3. Plan advisors and their clients are seeking greater flexibility and customized “value for service” for their retirement plans.

Plan sponsor clients look for consultative advisors and plan providers that can provide value that is specific to the plan’s needs, the report says. For example, plan design consulting can lead to increased participation rates, while plan administrative service support or certain fiduciary services can reduce a plan sponsor’s liability. The ability to create and deliver customized, flexible services to the plan is key to demonstrating strong value to the client, the report says.

4. Plan advisors are helping sponsors evaluate their plan’s success through annual reviews and industry benchmarks.

Once advisors have determined how their clients define a successful plan, they can work to establish measurable goals based on the metrics that matter. Many advisors are providing their plan sponsor clients with an annual check-up on key plan metrics such as participation rates, deferral rates, average account balances, plan fees, and match, vesting and loan provisions. Annual benchmarking of these metrics can help identify strategies to improve the plan.

5. Plan advisors may redefine their fiduciary status in advance of potential regulatory changes.

In 2012, the U.S. Department of Labor is expected to re-propose its rule on the definition of “fiduciary” for retirement plans. Regardless of if or when this rule is formalized, advisors have to decide whether they are comfortable or allowed to acknowledge fiduciary status. The advisors who will not act as fiduciaries will most likely seek the support of a third-party fiduciary service, the report says.