Bundled or Unbundled? You Decide

It’s tempting! Who wouldn’t want “Bundled” retirement plan services? After all, look what you can have –

A streamlined, one-stop shop. One person to take care of everything
Better pricing
Simplified data processing
Accountability – no finger pointing when things go wrong

But…is there more to consider?

Unbundled services are often referred to as “best in class” – for a reason. Choosing the best service available for each facet of your program brings to the table -

Custom Plan Design
Diversified business risk
Deeper skill sets and expertise
Diversity – Vendors may be added or replaced without a complete overhaul of your Plan

Which approach should you use? In making the choice, consider:

How complex is my retirement program? The more complexity, the more compliance expertise needed.
Plan Size? The larger the plan the more an unbundled program could be a better fit.
What is my tolerance for risk and should there be parties to perform checks and balances?
Do I have the in-house resources? A bundled provider may not have support to thoroughly administer complex issues.
What are the vendor’s core strengths? Do they do it all? Do they do it all well or just some services?

You can, and should have the best of everything – design customization, top-notch compliance, investment expertise and personal attention.

Quick Tip:

Make sure a vendor has a solution worthy of being selected on its own merit, not solely based on integration with other services. Otherwise, you may sacrifice relevant expertise.

Lisa Showalter, Partner & President

Markley Actuarial Services, Inc.