A global electronics manufacturer was experiencing a variety of service delivery problems within its defined contribution (DC) services. From payroll deduction errors to improperly amortized repayment schedules on 401(k) loans, the issues varied in nature and scope — but they all contributed to an escalating level of participant consternation and compliance risk.
A shoestring HR staff was hard-pressed to address vendor issues while managing its daily responsibilities, so the client sought SBA’s help fixing its relationship with the administration vendor.
The manufacturer’s contract with the vendor was still two years from term and specified hefty early-termination fees, so SBA sought opportunities to repair the client-vendor relationship and improve performance to acceptable levels for the duration of the contract:
- Interviewed multiples levels of employees in both the vendor and the client environments
- Analyzed and audited the systems and processes of both the client and the vendor
- Developed a detailed action plan to address specifications, systems, processes, personnel, training, executive communications, employee communications and more
- Managed each task on the action plan to ensure complete resolution by the assigned parties
- Tracked and measured performance to verify assigned tasks were accomplished and corrective actions taken
With SBA’s help, entrenched DC plan administration errors were resolved and the vendor was held accountable for significantly improving its performance for the duration of its contract with the client. While the client ultimately selected a new DC plan administrator, the two-year vendor recovery effort greatly minimized the negative impacts of a strained administrator relationship on plan compliance, company operations and the participant experience.
