The NEMCSA retirement plan needed large-scale improvements so it could set its participants up for a successful retirement.
BHS’s expertise in 401k success allowed them to rework NEMCSA’s retirement plan from the ground up, resulting in massive value increases and incredible participant engagement.
The Northeast Michigan Community Service Agency has always cared deeply about their employer-sponsored retirement plan, but it wasn’t giving their participants the results they wanted from their plan.
Outdated plan designs, sub-optimal investment options, challenging fees, and an overall lack of participant engagement were keeping the plan from reaching its full potential.
BHS found that sticking to the status-quo methods of retirement plan consulting wasn’t working for NEMCSA, and saw a great opportunity to enhance their efforts by creating a new framework.
THE PROCESS/FIDUCIARY RESPONSIBILITIES
Starting in 2013, BHS took over NEMCSA’s retirement plan and reworked it from the ground up.
SINCE THEN, THEY’VE INCORPORATED MANY NEW ENHANCEMENTS:
- Automatic enrollment and escalation
- A new recordkeeping platform
- Ongoing core fund monitoring
- Eliminated revenue sharing within funds
- In-depth target-date fund analysis
- Updated qualified default investment accounts to an age-based asset allocation fund
- High-touch, customized participant engagement
BHS’S PROCESS IS INCREDIBLY DETAIL-INTENSIVE AND CAREFULLY CENTERED AROUND THE CLIENT’S NEEDS.
As a co-fiduciary, BHS is legally responsible for monitoring and diversifying its client’s retirement assets and always acting in the best interest of the client.
However, the legal element of being a fiduciary only scratches the surface of BHS’s commitment to growing its client’s retirement plan. Client-minded decisions, diverse investment options, and streamlined services are foundational to BHS as an organization and used in the approach for 401k success.
NEMCSA’s definition of success became BHS’s focus when they started working together. BHS crafted its path forward by ensuring every aspect of the new plan would fit with NEMCSA’s company culture, long-term goals, and overall course for improvement.
The previously listed changes in NEMCSA’s retirement plan were a result of BHS’s constant desire to improve. Some of these innovations were years in the making and required a lot of collaboration and detailed communication between NEMCSA and BHS.
BHS collaborates on long term solutions that can be adapted and evolved. No product is ever final; everything can be improved.
BHS SOLVED THE PROBLEMS OF OUTDATED PLAN DESIGN, POOR INVESTMENT OPPORTUNITIES, HIGH FEES, AND POOR PARTICIPATION DIRECTLY. THE RESULTS SPEAK FOR THEMSELVES.
- BHS helped bring the value of NEMCSA’s retirement plan up to $30M, a $17M improvement from when they took over in 2013.
- Further, eligible employees are now participating at a rate of 95%, compared to 10% in 2013. Account balances are higher, retirement wellness scores are up, and NEMCSA’s valued employees are prepared for retirement like never before.
This is what makes BHS different. Other plan advisors will often see bare minimum improvement and diversification as sufficient work for their clients. Not BHS. One-size-fits-all approaches don’t create results of this magnitude, but paying attention to the client’s individual needs and tailoring solutions for them does.
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