| Case Studies |
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Improving Plan Operation in the Healthcare Marketplace Challenge The client, a regional Hospital, had struggled for several years with recurring administrative difficulties presented by their recordkeeper/administrator and had concerns about increased regulatory scrutiny of their retirement program. Given these challenges, the Hospital’s executives chose to engage our firm as an independent retirement plan consultant to conduct a comprehensive fiduciary review of their plan and plan operations. The Hospital sought to improve the level of service provided by their vendor, reduce the fees borne by participants, and to implement an improved fiduciary governance process. Specifically, the objectives were:
The Hospital hoped to achieve these goals with minimal disruption and full transparency to the Plan’s participant population. Process In the initial phase of the project, the Multnomah Group conducted a fiduciary review of the Plan’s current operation including:
This analysis helped the Hospital objectively evaluate the plan structure and vendors related to the plan, and where current practices could present fiduciary or operational gaps. The results of this analysis led to a process by which the Multnomah Group helped establish a Board-authorized Retirement Plan Administration Committee. The Retirement Plan Administration Committee, in consultation with the Multnomah Group, created a vendor search document which outlined how a Plan vendor might better support the hospital and its participants. To ensure that the wishes of the participant population were also represented in the process, the hospital hosted, and with the Multnomah Group, facilitated, focus group discussions where participants could express the concerns and desires they wished to see addressed in a new retirement plan solution. Based on that feedback, the Multnomah Group solicited responses from the current vendor as well as a diverse selection of additional vendors, resulting in a solution that significantly improved sponsor and participant service levels. Result As a result of this process, the Hospital created a Retirement Plan Administration Committee to act as a Named Administrator and Fiduciary. Additionally, the conclusion of the vendor search lessened the plan administration burden on Hospital staff, reduced fees to participants, and improved the delivery of participant education with benchmarks to measure success. The process also brought about an improved investment universe that included risk-based asset allocation options. Retirement Plan Administration Committee
Improved investment universe
Reduction of Fees
Improved Administration
Enhanced Education Services
At the conclusion of the project, all of the above was achieved merely by restructuring arrangements with existing vendors. In aggregate, these changes will significantly empower the Hospital to fulfill their fiduciary and regulatory responsibilities as plan sponsor. Multnomah Group, Inc. Copyright 2013. Multnomah Group, Inc. All Rights Reserved. † Information herein is provided “as is” for general informational purposes only. We do not represent, guarantee, or provide any warranties (express or implied) regarding the completeness, accuracy, or currency of information or its suitability for any particular purpose. Receipt of information herein does not create an adviser-client relationship between Multnomah Group and you. Neither Multnomah Group nor any of our advisory affiliates provide tax or legal advice or opinions. You should consult with your own tax or legal adviser for advice about your specific situation.
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