2014 Review and 2015 Opportunities

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A quick look back on Northwest Plan Services 2014 highlights and some thoughts going into 2015.

By the Numbers

  1. We added 22 new clients while losing only two – both due to acquisition
  2. Total assets on our system increased by almost 30%
  3. Total participants increased by 24%
  4. (Oh yeah, launched the new website too!  But you know that because you’re here.)

 

Interesting Deals/Developments

  1. We won an assignment with Hall County Georgia to help modernize/combine their 401(a) and 457 plans that had multiple providers and a fund lineup with more than 60 investment choices.  Working with the new advisor – Pensionmark – we combined these plans into a single RK/Admin system with a rationalized investment menu including high-quality TDFs.
  2. We added a number of mid-sized (100 to 300 participants) professional service firms including CPAs, law firms, consultants, private equity, advertising and medical groups.  As assets and participant balances have grown in these plans, the bundled solutions are simply too expensive and do not provide the level of flexibility and high-touch service required by these clients.
  3. We added one jumbo plan where our competition included AON/Hewitt, Vanguard, Xerox HR Services and Voya. It speaks to our people, approach, expertise, technology and especially our loyal client base that we won this deal against 4 of the top 5 providers in the business.
  4. Our two large Multiple Employer Plans – Associated General Contractors Northwest and the Municipal Employees’ Benefit Trust continue to display significant growth in membership and assets.

 

Takeaways:  Each of the developments suggests 2015 opportunity for NWPS and our Advisor partners:

  1. Much of the dramatic improvement/change in the DC market (rationalized fund lineups, QDIA/TDFs, auto-features, targeted communication) has not yet been embraced by public sector and not-for-profit DC plans (403(b), 401(a), 457, etc.). I believe that there will be significant demand by these public-sector and NFP plan sponsors to implement the same improvements for their plans and participants.
  2. Mid-sized professional service firms have outgrown bundled providers.  I am convinced that together we can deliver a superior experience for these firms across all dimensions of cost, quality, speed and service.
  3. With our “jumbo” win, we have added credibility in pursuing large plans vs. the largest providers.
  4. What we have done with MEBT and AGC Northwest can be replicated anywhere.  I believe that the opportunity to deliver high-performance, lower cost plans and services to multiple employer groups is a huge opportunity for NWPS and our advisor partners.

 

If you would like to discuss or learn more about any of these opportunities, send me an email or give me a call.

Tom O’Brien
847.492.0132
tobrien@nwp401k.com