By this time in a 401k project, we have reviewed the plan design, plan service providers, fiduciaries and the investments. If any there are any updates, then the changes must be implemented. Implementation can range from simply changing a fund choice to a complete replacement of the plan design and plan vendors. This process is straight-forward, but must be managed correctly to ensure a smooth transition to your new plan.
Common implementation tasks include:
· Document Review
· New documents
· Transferring assets from one vendor to another
· Establishing procedures for payroll and employer contributions
The Six8 Approach: Our role during implementation is to manage the process. Sure, documents and other items will need to signed, filed, and distributed; but our job is to stay on top of the project and make sure that everything is completed in a timely manner. Our team will coordinate with the vendors and provide status updates as appropriate.
If I had to pick a single obstacle for plan sponsors failure to manage and update their retirement plan, it would be Implementation. Changing plan designs, investments, or service providers is often perceived as a painful and laborious endeavor. The reality is that it does take some time and some organization, but most of that work should fall to your advisor and providers’ implementation teams. Implementation should not be scary.