The recordkeeping requirements inherent to nonqualified deferred compensation plans are complex and require an appropriate, flexible and scalable plan administration solution.
This solution should be equipped to provide distributors, plan sponsors, plan participants and carriers with proficient asset/liability management and recordkeeping support for all manner of plans.
Some plan administration tools, which offer little to no integration capability, will frequently result in duplicate efforts and error-prone redundant data entry. Not all plan administration solutions are created equal, which is why you should ask potential vendors the following five questions before considering their product.
1. How accurate is your data?
In the life insurance industry, data accuracy is critical. And with the Andesa Plan Administration system, you get exactly that. Integration with other Andesa solutions, including Policy Administration, Illustrations, Reporting, New Business/Enrollment and Sponsor/Policyholder Self-Service, results in incomparable data accuracy, responsiveness and access to both liability data and asset data.
2. How do brokers access plan information?
Brokers should be able to manage their clients’ plans in the most convenient and user-friendly way possible. For example, Andesa deploys solutions as software as a service (SaaS), storing all data in a truly secure, private cloud environment; offering anytime, anywhere data accessibility.
3. How do sponsors and participants use the system?
The Andesa Plan Administration system can be equipped with a robust self-service portal, which allows sponsors and participants to access data and valuations at anytime, in addition to performing routine maintenance on benefit plan attributes (change of address, beneficiary information, etc.) This allows for improved alignment with the expectations of today’s end clients, in addition to mitigating the need for the establishment of resource-drain call centers.
4. What types of plans can you support?
Your plan administration solution should have the capability to provide asset/liability management and recordkeeping support for both simple and complex plan types. The Andesa Plan Administration system is notorious for its aptitude in supporting a vast range of plan types, including but not limited to: variable and fixed defined-contribution income plans; defined-benefit income plans; split-dollar life insurance arrangement; and death benefit only plans.
5. Where can I turn for ongoing support?
No matter which vendor you choose, an associate should always be available to help you troubleshoot and overcome any challenges that may arise with the system. Customer service often sets one solution apart from another, and at Andesa, a dedicated, experienced client engagement staff and technical team is available around the clock to provide excellent client support.
Some plan administration vendors will suit your needs better than others.
Ask your vendor these five questions when making your choice, and there’s a very good chance that the decision you make will provide the best results for you.
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