Midwestern telecom firm seeks simplified solutions for multiple retirement plans. Retirement experts were hired to streamline services, reduce costs, and improve operations.
THE CHALLENGE
An independent, family-owned telecommunications firm with defined benefit and contribution plans desired a simplified solution. This multi-generational family business faced the challenge of meeting a legacy pension obligation while transitioning to a more modern, defined contribution plan. The frozen pension plan needed an actuarial review and an investment policy matching the liability. The defined contribution plan had yet to be thoroughly benchmarked since installation and showed signs of outgrowing the platform. Multiple service providers could not create consolidated pension/401(k) account statements and report for participants leading to a lack of understanding within the employee population.
THE METHOD & RESULTS
The retirement experts discovered that it was possible to increase and simplify the vendor structure, reduce costs, and provide better reporting to participants. The retirement experts discovered that it was possible to increase and simplify the vendor structure, reduce costs, and provide better reporting to participants.
Facilitated the consolidation of both plans to a single recordkeeper and actuarial provider
Supported the revaluation of the pension obligation to a more realistic termination value
Reallocated pension to better match liability
Reduced total plan costs by 23%• Implemented employee communication program
Note: The above case study is hypothetical and does not involve an actual Fiduciary Financial Partners client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Fiduciary Financial Partners is engaged to provide investment advisory services.
