Helping a University Modernize Their Plan Design through Provider Consolidation
A large public university offered employees three defined contribution retirement plans, collectively representing $3.2 billion in assets, serving over 20,000 participants and being administered by eight different retirement plan providers offering over 550 investment options.
Innovest and the university committee and staff organized an RFI requesting service and fee proposals based on multiple plan design considerations. Innovest worked with multiple layers of decision makers and university leadership to keep them informed on the Plan review process and benefits of the recommended changes, as well as to receive final approval. Further, Innovest helped coordinate an extensive employee outreach to explain how the changes were going to affect participants.
Through the modernization and simplification of plan design through provider consolidation, the University increased efficiencies in administering the retirement program, improved consistency in participant communication and education services and messaging, helping employees to become more retirement ready.
Innovest suggested an open investment platform applying a simplified three tiered investment menu to ease investment decisions while accommodating all types of investors, reducing the number of investment options and lowering expenses. Additionally, Innovest was able to reduce the total retirement program fees by over 35% or approximately $4.5 million annually and provide participants with full transparency and equality of plan fees.