In-Depth Plan Evaluations and Cost Savings

Background

A nationally recognized firm issued a Request for Proposals in search of a new retirement plan service provider. While LAMCO was referred to them after the RFP had been completed and they had made their selection, we asked for the opportunity to review the winning proposal to demonstrate our capabilities.

Solution

Our review noted that the winning provider made a recommendation to include a Safe Harbor contribution, however the provider failed to recognize that the company had recently purchased another firm. The newly acquired company had seven times the number of employees as the original firm, making them a controlled group. Adopting this change would have required the parent company to offer the same benefit to the subsidiary company, resulting in an additional $480,000 cost.

Results

By conducting thorough research and in-depth evaluations, LAMCO was able to identify a major issue with the firm’s current retirement plan service provider. The contribution cost quoted by the provider was significantly lower than what the actual contribution cost would have been. Our diligent work to fully understand our clients’ needs and situations helped make a difference amounting to nearly half a million dollars for this LAMCO client.