Sourcing Due Diligence pays Dividends

September 26, 2013

A recent article in BenefitsPro predicted an increase in 4th quarter activity related to sourcing potentially new investment consultants or bundled providers of service to DC plans. We support these efforts, but wish to offer two pieces of encouraging advice. The first comes from an attorney we work with who notes that you better be prepared to “move” when you source providers. You can increase risk to the committee by passing on what looks to be a “better deal” without documentation to support your decision to stay with your current vendor. Secondly, the committee, participants and shareholders are better served if you follow a detailed procurement process. This provides the necessary information for your due diligence, and most importantly – support for your decisions. Our firm has responded to and led many sourcing exercises, and all parties benefit from a thorough and fair process where risk exposure is reduced.

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