POINT of View
3. Plan Sponsors inserting themselves as
control points in production processes (e.g. “I
need to see it before it goes out”) thus
“breaking scale”
4. An average 12,000+ fund choices per
Recordkeeper – with 80 percent of the
money in 200 choices or less.
Still, the
Recordkeeper is required to price, track
income and corporate actions, maintain fund
fact sheets and information, train telephone
representatives, print on statements and
present all 12,000 options online.
The question we need to ask ourselves is whether or
not these service variables ultimately lead to better
retirement outcomes for the Participant? While you
can argue effectively that some of these may be
important for the Sponsor’s brand image or other
legitimate purposes, is the Participant truly served by
ultimately paying for the lack of scale, and
corresponding average service experience that
results?
Consider this – in a typical Defined
Contribution phone center 40 percent of the
calls made by Participants are calls they didn’t
want to make (e.g. “I don’t understand this
form, I didn’t get my check yet, I don’t
understand my 50 investment choices”) and
the Recordkeeper didn’t want to take.
All of these services ultimately end up being paid for
by the Participant.
What do we do about this?
First, we must obtain a collective and common view
of the challenge. In subsequent articles we will
expand upon this subject in an attempt to provide
education and insight into a tremendous opportunity
we have to help our current and future retirees.
Second, we need to start talking about servicing
value and hold ourselves accountable for designing
services that help Participants retire while
simultaneously building scale.
The goal is to
eliminate those service variations that do not benefit
the Participant, Sponsor, or Recordkeeper (there are
more of these than you can imagine).
What can Sponsors do?
In order to fix this broken model, it’s important for you
to engage in a productive discussion with your
Recordkeeper to talk about how together you can
focus on the highest value priority service items to
achieve scale.
Connect With Us

(855) 274-3434

connect@getBridgePoint.com

www.getBridgePoint.com
_____________________________________________________________________
About BridgePoint
BridgePoint is not your typical consulting firm. We take a practical, results-based approach focused on executable
strategies. We specialize in helping retirement, financial services and benefits providers improve their business
performance by better aligning efforts with what customers value - and are willing to pay - for services.
We are
experienced business professionals who have managed all facets of retirement and benefit services, including
delivering major transformation programs. We bring hands-on leadership and deep industry expertise to helping
our clients overcome the common obstacles that often derail strategic initiatives. We provide the guidance needed
to accelerate execution and deliver results.
connect@getBridgePoint.com  (855) 274-3434  www.getBridgePoint.com
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