for-dollar on all employee contributions… It basically gets
us into the area where if we’re contributing dollar-fordollar, gets us in the safe harbor where we don’t have to do
the discriminatory testing in contributions that we did in
the past. We’re still probably contributing as much, maybe
if not a little bit more than we were in the past, but we’re
not having to pay to get all of the testing done and having
the year-end uncertainty of- “Do we have to pay here? Do
“ I know it’s not always possible,
because when turnover happens
you just handle things as well
as you can, but I think there’s
maybe some continuity that’s
not going on....”
we not have to pay?” We kind of pay a little all along at
that point.
CM:You changed relationships 3 times in a short time
frame (8 years). Is there something you wish the TPA or
recordkeeper had done differently that might have made
their model more attractive? Do you have any advice for
the professionals when it comes to understanding your
business, or the issues that made you move your business
elsewhere?
WH: We had a local broker with, I think the company was
Legg Mason, and they got bought out by Smith Barney.
They reorganized and no one was in this area handling the
account locally. It was going to be 70 miles away. So, we
moved to someone locally, [but] he actually got promoted
and moved to another area. So then we were left without
the relationship. It’s not been a service issue as much as it’s
been reorganization and mobility of people in that industry.
I know it’s not always possible, because when turnover
happens you just handle things as well as you can, but I
think there’s maybe some continuity that’s not going on:
when someone knows they are not either going to be local
or going to have the same service providers for clients,
there’s a smooth and readily communicated succession
plan. Basically, it is, we just find out somebody else has
moved and three months later we may meet the new guy, we
may not. I think looking at a little better customer service
– there again I know these spots don’t fill in overnight.
Like in a lot of things - just good customer service and
communication.
wish you had done differently? Do you have any
advice you’d like to share with a peer going through
a similar change?
WH: I wish I didn’t have to be quite so proactive
to get our service providers in to meet and educate
the employees, and I wish I could be more proactive
in getting my employees interested in meeting with
them. It’s one of those things - we should meet at
least quarterly, at least every 6 months, but I don’t
feel enough effort is made on the other end, or
maybe by my employees to get those meetings to be
meaningful and useful to both sides.
CM: What was the end result? Did everything get
resolved satisfactorily? Are there any other trustees
or fiduciaries on that account and are they satisfied
as well?
WH: It is satisfactory. We do have good participation.
I think it’s like so many oth