A Recent Study Found That The Number Of Plan Sponsors Highly Dissatisfied With Their Provider Has Tripled In The Past Three Years

Copyright 2008 Euromoney Institutional Investor PLCAll Rights Reserved Defined Contribution & Savings Plan Alert

July 21, 2008

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A Recent Study Found That The Number Of Plan Sponsors Highly Dissatisfied With Their Provider Has Tripled In The Past Three Years. Do You Think Recordkeepers Are Doing A Good Job Serving Plan Sponsors?

Kentucky Public Employees' Deferred Compensation Authority:Room To Improve

Robert Brown, executive director, said the 74,000-life $1.6 billion 401(k) and 457 plan feels for the most part recordkeepers are doing a good job serving plan sponsors.

"Recordkeepers are now able to handle more complex options, but there are still issues and room for improvement," Brown told DCSPA.

Among the issues Brown is most concerned with are those relating to plan sponsors Web sites. "Recordkeepers need to make them more participant friendly and be able to keep them current," he said.

Aon and Mercer are its consultants. Nationwide is its recordkeeper. Pendleton Woolen Company:Pleased with Provider

Robert Mathis, chief financial officer for the Portland, Ore.-based company, said he has been happy with the service provided by its recordkeeper, Fidelity Investments, noting its call center and education offerings.

Mathis said that the company administered its own plan until around three years ago. Since, Fidelity has provided the recordkeeping for the company's non-union corporate staffers.

The Standard provided recordkeeping for the 401(k) plan for union workers before the company switched to Fidelity at the end of last year. Mathis said the company did not provide as much educational material as Fidelity. The plan sponsor has 600 participants in its DC plans and a combined $65 million in plan assets. St. Louis County:Discontent Linked To Markets

Kirk McCarley, personnel director for St. Louis County (Mo.), said he was pleased with the county's two recordkeepers, Prudential Retirement and Nationwide, adding that general plan sponsor dissatisfaction could be linked to recent market downturns. "The dissatisfaction that may result may generally be related to the stagnation in the market itself," he said.

One example, McCarley said, was members of the county's investment committee getting "crotchety" as its $450 million defined benefit plan was affected by the market, despite the hard work of their consultant, St. Louis-based Summit Strategies. "It's really not the fault of the consultant. That tension just grows [and] doesn't have anything to do with [the consultant]. I think it's the general state of affairs," he said.

The county has an approximately $70 million 457 plan with 1,500 to 1,600 participants among 4,200 eligible employees. The Prudential plan has around $60 million while Nationwide's plan has $10 million. The county uses St. Peters, Mo.-based Retirement Plan Advisors as the consultant for its Prudential plan and has no consultant for the plan offered by Nationwide. Leupold & Stevens:Happy With Recordkeeper

Lynne Melchione, benefits specialist, said she is pleased with the Beaverton, Ore.-based optics company's recordkeeper, which she declined to identify.

Melchione said she was happy with the communication, customer service and response time offered by the provider. She said she was new to her position and therefore could not put her opinion in a broader context. Melchione declined to reveal the amount of plan assets but said Leupold & Stevens had about 500 participants, equaling an 86% participation rate.

According to the 2007 Money Market Directory, the plan has a $22 million DC plan.

August 6, 2008