QOTW: RFPs

We asked members how long it has been since their company has put out an RFP for the retirement plan. The most common response was within the last 1-3 years (30.5 percent of plans), followed by “doing one now” (15.3 percent of plans). A common theme in the comments was that RFPs are a lot of time and work, and for those not doing them frequently, many are evaluating their plan in other ways to ensure service and fees are reasonable such as an RFI or having an advisor/consultant review.

Comments:

• Believe that this should be completed at least every 5 years but perhaps sooner if there are certain triggers (inadequate performance; outside knowledge that fees are excessive, other changes such as participant population or participation changes) that would facilitate going out for proposals earlier.
• Every 5 to 9 years.  We issue a 5 year contract with two 2-year extension options.
• Full RFPs are not done very often. We do conduct RFIs more frequently.
• Generally, at least every three years to assess if fees are reasonable and to compare service features.  That said, we quarterly review the investments and related fees and performance against our investment policy statement and benchmarks.
• It has been approximately 10 years since we have completed and are in the process of completing one now.
• It has been more than 10 years since the last RFP.  We intend to be on a 3-5 year cycle going forward.
• Less than 1 year actually since the last one...done approx. each 3-5 yrs
• We typically had done RFPs when we feel they might be needed, but we've moved to a more rigid 3-year cycle due to litigation risks.
• Our company was considering an RFP this year but we are notified earlier this year of the intent of being acquired.  If the sale does not go through, then an RFP will move forward.
• RFI: every 3 years; RFP: only if needed to assess services / consider a change
• RFPs are a LOT of time and energy.  Generally prefer to do interim assessments via an RFI.
• RFPs are required every 8 years; we are two years in with a brand new contract with a new recordkeeper.
• The 403(b) retirement plan was revamped in 2018.
• They were never done (17 years). I required as soon as I joined the agency.
• We are doing an advisor RFP this year and a recordkeeper RFP next year.  We feel every 5 years or so is fine if everything is going well.  They're a lot of work.
• We do benchmarking every 2 years but haven't done a full blown RFP for 10 years but are planning on doing so.
• We have been with our provider for a long time and they are doing a great job.
• We have not issued an RFP for many years.  However, we routinely have consultant reviews of our service and management fees and recently compared our Plan service and management fees with a detailed proposal from a selected provider.
• We will be benchmarking and market exploration in 2022 by hiring a consulting firm. We may or may not do either an RFI or RFP depending on our initial review and analysis.
• We will be doing them much more frequently.