Five Questions for Plan Administration Software Vendors

The recordkeeping requirements inherent to nonqualified deferred compensation plans are complex and require an appropriate, flexible, and scalable plan administration software solution.

This solution should provide distributors, plan sponsors, plan participants and carriers with proficient asset/liability management and recordkeeping support for numerous plans.

Some plan administration tools offer little to no integration capability and frequently result in duplicate efforts and error-prone redundant data entry. Not all solutions are created equal, which is why you need to fully assess the capabilities of the plan administration software you’re considering.

The Impact of Choosing the Right Plan Administration Software

Selecting the right plan administration software is critical for the long-term success and efficiency of managing nonqualified deferred compensation plans. The complexities of asset/liability management, regulatory compliance, and participant engagement require a solution that seamlessly integrates with your organization’s broader systems. A well-chosen software reduces manual data entry and the potential for errors. It enhances the user experience for brokers, sponsors, and participants by providing intuitive access to essential plan information.

Beyond operational efficiency, the right plan administration software helps ensure data accuracy, compliance with evolving regulations, and scalability as your needs grow. It allows you to manage complex plans, generate insightful reports, and improve decision-making. Moreover, robust support and flexible service options—like those provided by Andesa—ensure your team can navigate challenges, adapt to changes, and maximize the value of your plans.

Investing in the right software means choosing a partner that supports your strategic goals and provides the tools necessary to streamline processes, mitigate risks, and deliver a superior experience to all stakeholders.

1. How Accurate is Your Plan Administration Software Data?

Data accuracy in the life insurance industry is critical for ensuring compliance, managing liabilities, and making informed decisions. Errors or inconsistencies can lead to regulatory issues, financial discrepancies, and dissatisfied participants. When evaluating plan administration software, it’s essential to ask about its accuracy, data integration capabilities, and how it manages liability and asset data. Look for a solution that integrates seamlessly with other tools to minimize manual data entry and ensure real-time access to accurate information. Accurate data is the backbone of efficient plan management.

With Andesa’s Plan Administration solution, you get accurate data. 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 liability and asset data.

2. How Do Brokers Access Plan Information?

Brokers need convenient, user-friendly access to manage their clients’ plans effectively. When evaluating plan administration solutions, it’s essential to ask how easily brokers can retrieve and manage plan data. A good system should provide secure, cloud-based access that allows brokers to view and update information from anywhere, ensuring they can respond to client needs quickly and efficiently. Accessing plan information anytime is essential for brokers to provide timely service and maintain strong client relationships. For example, Andesa deploys solutions as software as a service (SaaS), storing all data in a truly secure, private cloud environment, offering data accessibility anytime, anywhere.

3. How Do Sponsors & Participants Use the System?

Sponsors and participants need easy, self-service access to plan information and the ability to make updates efficiently. When evaluating plan administration software, ask whether a self-service portal allows users to view data, perform valuations, and manage routine tasks like updating personal details or beneficiary information. This reduces the need for resource-heavy call centers and meets modern client expectations for user-friendly, on-demand access. The Andesa Plan Administration system offers a robust self-service portal, providing seamless access and improving the user experience for sponsors and participants.

4. What Plans Can Your Administration Software Support?

Plan administration software should be able to handle both simple and complex plan types, providing the necessary asset/liability management and recordkeeping support. When evaluating a solution, ensure it can support a variety of plans, such as defined-contribution, defined-benefit, split-dollar life insurance, and death benefit-only plans. Flexibility is key to meeting diverse client needs and regulatory requirements. The Andesa Plan Administration system excels in supporting a wide range of plan types, ensuring robust management and scalability for all kinds of arrangements.

5. Where Can I Turn for Ongoing Support?

When selecting a plan administration software vendor, ongoing support is crucial to ensure smooth operation and troubleshoot any challenges. It’s important to ask about the availability and responsiveness of customer support, as exceptional service can distinguish one solution from another. Having a dedicated support team can make a significant difference in technical issues or user assistance.

At Andesa, clients benefit from an experienced client engagement staff and comprehensive self-service portals, providing carriers, brokers, sponsors, and participants with the necessary resources. And our dedicated, experienced client engagement staff and technical team are available around the clock to provide excellent client support.

Making the Right Choice for Plan Administration Software

Choosing the right plan administration software vendor is a crucial decision that will impact the efficiency, compliance, and overall success of your nonqualified deferred compensation plans. Not all solutions are created equal, so asking the right questions is essential to ensure you select a system that aligns with your organization’s unique needs. By focusing on data accuracy, ease of access for brokers, user-friendly portals for sponsors and participants, plan support capabilities, and ongoing service, you can make an informed choice that delivers long-term value.

Each vendor offers different strengths, but finding one that provides flexible, scalable solutions with robust support—like Andesa—can streamline your processes and help you navigate market changes. Andesa’s comprehensive offerings, including seamless integrations, 24/7 access to plan tools, and fully customizable portals, set a high standard in the industry.

As you evaluate your options, consider how the solution will enhance your ability to manage plans effectively while ensuring compliance and meeting the expectations of all stakeholders.

Contact Andesa today to learn more about how our tailored services can help you optimize your plan administration and achieve success.