401(k) Plan Transformation
How a multi-specialty medical organization overhauled its retirement plan to dramatically improve participation, reduce fees, and strengthen fiduciary governance.
Client Type
Multi-specialty Medical Org
Industry
Medical
Employees
260
Plan Type
401(k) Safe Harbor
Plan Assets
$12,000,000
Relationship
New
What specific Pain Points & Plan Design Concerns did the Client face before changes were made?
Employee Education
Lack of an education program; guidance was limited to HR efforts with no structured approach.
Fiduciary Oversight
No formal Fiduciary processes or procedures in place or a clear process to govern the plan.
Investment Lineup
Outdated, with a bottom-quartile Target Date Series and excessive investment choices. No IPS or monitoring.
Plan Fees
Not competitive relative to the plan's asset size, participant count, and ongoing contributions.
Participation
Below industry benchmarks, particularly among non-physician new hires and overall low average deferral rates.
Plan Metrics
No tracking in place to evaluate key plan health metrics & long term employee impact.
What specific Strategies or Plan Structure changes were recommended?
Auto-Enrollment & Auto-Escalation
Immediate positive impact on participation & increased deferrals.
Roth Deferral
Added to complement pre-tax offering & enhance employee options.
Employee Education Program
Defined annual schedule with one-on-one meetings and group sessions covering allocation, deferrals, and financial planning.
Investment Lineup Overhaul
Re-tooled to include a new Target Date Series, Active & Passive funds meeting scorecard criteria.
Investment Policy Statement (IPS)
Implementation of an IPS to define governance standards and provide a clear structure for plan oversight.
Fiduciary Oversight Process
Semi-annual retirement plan committee meetings, annual fiduciary training, and ongoing industry benchmarking data.
Annual Service Calendar
Created & Implemented an annual calendar outlining education dates, key deliverables, deadlines & industry data.
Data Tracking
Captured data from each education session reflecting participation, deferral changes, incoming rollovers & investment questions.
Collaborative Efforts
Worked closely with the TPA, existing recordkeeper, and the HR & Executive Team to refresh plan documents, overhaul the fund lineup, and structure education without disrupting daily operations.
Annual Service Calendar
Clear education schedule and collateral for participants.
Quarterly Newsletters
Delivering Employee & Employer content featuring industry updates, plan metrics, and targeted educational content.
Targeted Outreach
Utilizing demographic and participation data to address specific employee needs.
Fund Scoring System
Independent system with quarterly monitoring ensuring all funds meet IPS standards.
Streamlined Plan Administration
One point of contact.
New Hire Onboarding
Enrollment Meetings to ensure all employees have a consistent experience.
Quantitative outcomes demonstrating the power of a structured retirement plan strategy.
Participation Rate
Increased from roughly 52% to 83%, representing a 60% improvement in employee engagement.
Deferral Rate
Rose from an average of 2.13% to 5.48%, a 157% increase in savings rates.
Plan Fees
Reduced overall plan expenses by approximately 26%, directly benefiting all employees.
TPA / Compliance Testing
Transitioned TPAs, eliminating conflict of interest, improved transparency & plan efficiency, while reducing annual fees by roughly 37%.
Investment Lineup Simplified
Simplified participant choices. Replaced 10 funds, including bottom-quartile Target Date Series that did not meet scoring criteria and IPS standards.
Don't allow your plan to sit idle. Participant Education and prudent Fiduciary Oversight are the foundation of a well-run retirement plan. Without consistent Engagement, Governance, and Monitoring, even a well-designed plan can create unnecessary risk for the plan sponsor and poor outcomes for participants.
What did you learn as an advisor?
Most retirement plans have good intentions but require ongoing attention as objectives and regulatory standards evolve. Investment reviews, benchmarking, compliance oversight, and participant education need consistent management to align plans with company objectives.
Final Thought.
A retirement plan should not simply exist. It should increase employee engagement and retention, enhance your employees' financial security as they work towards a successful retirement, and drive measurable progress toward Retirement Readiness for your employees.
Let us show you how the SECURE Retirement Plan Process™ can deliver measurable results for your organization.
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