A Request for Proposal, or RFP, is a document used to solicit project outlines and quotes from vendors who provide services to a Health & Welfare or Qualified Retirement Plan.
Proposals from a variety of service providers are then compared and assessed for quality of service, and reasonableness of fees.
Why Do You Need To RFP For Your Plan?
The RFP Process is necessary for managing your ERISA plan for two major reasons:
- Having an apples-to-apples comparison of service options allows you to select the vendor that will best suit the needs of your plan.
- ERISA requires that you prudently select the best services for plan participants & beneficiaries, while ensuring that the fees being paid out by the plan are reasonable.
When conducting the RFP Process for your organization’s Health & Welfare Plan or Qualified Retirement Plan, we take the following actions:
- Prepare the Request For Proposal (RFP) document outlining the project requirements for service providers to bid on
- Select service providers to include in the RFP that will provide proposals for a competitive selection process
- Review proposals and select the best deal that meets the criteria of the RFP at the most reasonable price
Get The Best Prices For Plan Participants & Beneficiaries, While Staying ERISA Compliant
Every business that offers Health & Welfare or Qualified Retirement Plans to employees has a fiduciary responsibility to put plan participants and beneficiaries first.
A large part of this duty involves checking the marketplace to find the best service providers for your plan, at a reasonable price. Doing so will allow you to offer the strongest plan possible to employees while keeping costs at a reasonable level as required by ERISA.
WARNING: If you are found to be paying fees with plan assets that the Department of Labor deems “unreasonable”, they will have to be paid back to the plan in addition to lost earnings and an excise tax. Plan Sponsors and Fiduciaries are held personally liable for these penalties.
Contact Us To Help With Your RFP Management
Do you need help managing the RFP Process for your Health & Welfare or Retirement Plan?
If so, please schedule a time to speak with one of our fiduciaries here.
Schedule A Free Consultation With The ERISA Advisory Group Assist You With RFP Management