Higher Education Institution:
University Plan to the Head of the Class
The situation can be complicated for colleges when faculty and staff have deep loyalty to a service provider that is overdue for benchmarking and re-pricing. After establishing a prudent decision-making process, a University plan realized cost savings, enhanced communications, and improved retirement readiness without changing service providers. Within one year of hiring PHD Retirement Consulting, the institution saw participation rises from 85% to 97%, and average savings rate from 5% to nearly 8.5%. More than two-thirds of participants use a professionally-managed target-date fund (compared to just 9% before), and overall plan fees dropped from 88 basis points to 56 basis points even after adding the cost of an advisor..
