Vol.13, July 2026

July Benefits Rundown: PEP trade-offs, vendor selection + 401(k) operations

Graphic for Mindy’s Benefits Rundown July 2026 issue with a "Play Now" button.

My youngest, who finished undergrad in May, has been looking at graduate programs where he can continue playing baseball. Going into the process, he had one non-negotiable: he wanted to be somewhere warm after four years in the Northeast.

After visiting schools, meeting coaches, and learning more about the programs, he made a different choice. Program quality, culture, and competitiveness ended up mattering more than climate.

It made me think about the vendor selection processes we see in the benefits world. Plan sponsors often start with one clear priority in mind. Lower fees is the classic example, though it could be almost anything. As plan sponsors evaluate providers more closely, other factors like service, expertise, and long-term fit can take on greater importance.

There’s nothing wrong with having a starting point. But the best decisions come from being open-minded and considering the broader context of what you’re trying to achieve.

‘Til next time,

Mindy Zatto, FSA, EA, FCA, MAAA, MSPA
Founding Principal, SBA

This Month at SBA

A quick look at what’s new, noteworthy, or just plain useful from our team.

Two transportation workers in safety gear walking along a rail yard, representing a Strategic Benefits Advisors client in a 401(k) operations review case study.

Case study: 401(k) operations review

When a transportation company began encountering persistent eligibility, RMD, and administrative inconsistencies across two 401(k) plans, leadership sought a deeper operational view beyond the standard annual audit. SBA conducted a comprehensive, pay-period-level review of plan administration, identifying gaps in data integrity, processes, and execution. SBA’s work uncovered hidden risks, prioritized corrective actions by severity, and delivered a clear roadmap to strengthen compliance and fiduciary oversight.

Strategic Benefits Advisors article graphic, showing a hand placing a bright blue puzzle piece labeled "401K" into a missing slot of a white jigsaw puzzle.

The pros and cons of a PEP for larger employers

Writing for Employee Benefit News, SBA’s Jay Schmitt explores why larger plan sponsors are taking a closer look at pooled employer plans (PEPs) and why the decision isn’t as straightforward as it may seem. While PEPs can reduce administrative burden and shift certain fiduciary responsibilities, they also require employers to give up meaningful control over plan design, investments, and governance. The article offers useful perspective for sponsors weighing what they gain—and what they give up.

Ask the Principals

Our leadership team tackles tough questions from plan sponsors like you.

Close-up of hands holding an open, lined spiral notebook and a pen at a wooden desk.

How do I pick the right vendor for a benefits or HR project?

A: Start with clarity: What services do you need, and what outcomes are you expecting? Then create consistent evaluation criteria to compare vendors on more than just price. Look for alignment with your goals, delivery model, and values. Plan sponsors trust SBA to lead the full RFP process, from defining selection criteria to scoring vendor proposals and guiding final decisions.

Whether you’re selecting a benefits administrator, a H&W broker/consultant, or an investment advisor, the fundamentals of smart vendor selection remain the same. It begins with defining your scope and success metrics. What does “good” look like for your team, your participants, and your stakeholders?

Once that’s established, objective, well-structured evaluation criteria help level the playing field. These criteria should reflect your priorities, from user experience and data integration to service model and scalability. That way, vendor comparisons aren’t just about cost—they’re about fit.

SBA has supported vendor evaluations across a wide range of HR and benefits functions. We help plan sponsors identify hidden risks, surface meaningful distinctions, and navigate site visits, demos, fee structures, and contracts with greater confidence. Our goal isn’t just to get you to a decision—it’s to help you make the right one.

Tags: benefits administration, vendor management/recovery, vendor search/RFP process

Submit Your Question