Case study · 401(k) plan transformation
How a medical group turned an idle 401(k) into a plan people use.
A multi-specialty medical organization overhauled its retirement plan to improve participation, reduce fees, and strengthen fiduciary governance.
- Client
- Multi-specialty medical org
- Industry
- Medical
- Employees
- 260
- Plan type
- 401(k) Safe Harbor
- Plan assets
- $12,000,000
- Relationship
- New
83%
Participation rate, up from roughly 52%
5.48%
Average deferral rate, up from 2.13%
26%
Lower overall plan expenses for every employee
01 · The challenge
Good intentions. No structure.
The pain points and plan design concerns the client faced before any changes were made.
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01
Employee education
No education program. Guidance was limited to HR efforts with no structured approach.
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02
Fiduciary oversight
No formal fiduciary processes or procedures, and no clear process to govern the plan.
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03
Investment lineup
Outdated, with a bottom-quartile Target Date Series and excessive investment choices. No IPS or monitoring.
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04
Plan fees
Not competitive relative to the plan's asset size, participant count, and ongoing contributions.
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05
Participation
Below industry benchmarks, particularly among non-physician new hires, with low average deferral rates overall.
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06
Plan metrics
No tracking in place to evaluate key plan health metrics and long-term employee impact.
02 · The solution
Eight changes across plan design, governance, and service.
The strategies and plan structure changes recommended to the client.
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Auto-enrollment & auto-escalation
Immediate positive impact on participation and increased deferrals.
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Investment Policy Statement (IPS)
An IPS to define governance standards and give plan oversight a clear structure.
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Roth deferral
Added to complement the pre-tax offering and widen employee options.
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Fiduciary oversight process
Semi-annual retirement plan committee meetings, annual fiduciary training, and ongoing industry benchmarking data.
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Employee education program
A defined annual schedule of one-on-one meetings and group sessions on allocation, deferrals, and financial planning.
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Annual service calendar
An annual calendar of education dates, key deliverables, deadlines, and industry data.
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Investment lineup overhaul
Re-tooled with a new Target Date Series and active and passive funds that meet scorecard criteria.
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Data tracking
Data from every education session: participation, deferral changes, incoming rollovers, and investment questions.
Collaborative efforts
Plan documents refreshed, the fund lineup overhauled, and education structured, without disrupting daily operations.
Delivered in close partnership with
- Third-party administrator
- Existing recordkeeper
- HR & executive team
03 · Implementation
A year-round service model, not a one-time fix.
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Annual service calendar
A clear education schedule and collateral for participants.
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Quarterly newsletters
Employee and employer editions with industry updates, plan metrics, and targeted education.
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Targeted outreach
Demographic and participation data used to address specific employee needs.
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Fund scoring system
An independent system with quarterly monitoring so every fund meets IPS standards.
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Streamlined administration
One point of contact for the plan.
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New hire onboarding
Enrollment meetings so every employee gets a consistent experience.
04 · Results
Measured outcomes, before and after.
Quantitative outcomes of a structured retirement plan strategy.
Participation rate
Up from roughly 52% to 83%, a 60% improvement in employee engagement.
Average deferral rate
Rose from an average of 2.13% to 5.48%, a 157% increase in savings rates.
Plan fees
Overall plan expenses reduced by approximately 26%, directly benefiting all employees.
TPA & compliance testing
Transitioned TPAs, eliminating a conflict of interest and improving transparency and plan efficiency, while cutting annual fees by roughly 37%.
Investment lineup simplified
Simpler participant choices. Replaced 10 funds, including a bottom-quartile Target Date Series that did not meet scoring criteria and IPS standards.
05 · Takeaways
Don't allow your plan to sit idle. Participant education and prudent fiduciary oversight are the foundation of a well-run retirement plan.
Without consistent engagement, governance, and monitoring, even a well-designed plan can create unnecessary risk for the plan sponsor and poor outcomes for participants.
What we learned as advisors
Most retirement plans have good intentions but need ongoing attention as objectives and regulatory standards evolve. Investment reviews, benchmarking, compliance oversight, and participant education need consistent management to keep a plan aligned with company objectives.
Final thought
A retirement plan should not simply exist. It should increase employee engagement and retention, strengthen employees' financial security as they work toward retirement, and drive measurable progress toward retirement readiness.
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