Client background and business challenge 

Our client, a prominent, not-for-profit hospital, recognized the importance of optimizing its financial strategies to better serve its employees. With a keen focus on supporting their staff’s long-term financial wellness, the hospital sought to revamp its $50 million 403(b) retirement plan. The objective was clear: to pinpoint opportunities for enhancement and simplification, thereby ensuring a more cost-effective and seamlessly administered 403(b) retirement plan. 

The hospital entrusted Baker Tilly Wealth Management’s institutional retirement consulting team with the task of conducting a review of their 403(b)retirement plan. This comprehensive assessment aimed not only to identify areas for cost reduction but also to streamline plan administration processes and enhance the retirement strategy's effectiveness. 

Baker Tilly Wealth Management approach 

Our team started the engagement by conducting a comprehensive analysis of the structure of the hospital’s 403(b) plan and the terms outlined in their vendor contracts. Armed with the information from the analysis, we identified inefficiencies in recordkeeping fees amounting to $325,000 annually and outlined a strategic initiative to rectify these discrepancies. The strategic plan included contract renegotiations and strategic adjustments to reduce fees and deliver substantial savings to the hospital.  

Additionally, our examination of the plan’s design revealed opportunities to streamline administrative processes, with the goal of alleviating the strain on the hospital’s support staff. Recognizing the critical importance of time-saving measures for the hospital's dedicated support staff, we recommended targeted enhancements tailored to expedite key administrative tasks. Then, we implemented simplified enrollment procedures and introduced automated reporting mechanisms.  

Results 

Through our collaboration with the hospital and our expertise in retirement plan optimization, we successfully enhanced the efficiency and effectiveness of their 403(b) retirement plan. As a direct result of our strategic plan and recommendations, the hospital received remarkable cost savings, without sacrificing the scope of services provided to plan participants. This financial optimization not only bolstered the plan’s fiscal health but also stressed our commitment to maximizing value for our client.  

In addition, the implementation of streamlined administrative processes proved instrumental in driving efficiency across the organization. By freeing up valuable time for the hospital's support staff, our solutions enabled them to redirect their focus towards higher-value tasks and priorities. This newfound productivity not only enhanced operational performance but also cultivated a culture of innovation and continuous improvement, positioning the hospital for sustained success in a dynamic healthcare landscape.  

Moreover, the optimization of the plan's design yielded tangible benefits for plan participants, ushering in a more intuitive and user-friendly experience. Simplified enrollment procedures and enhanced access to information and retirement planning resources empowered employees to make informed decisions about their financial future, fostering a sense of confidence and security. 

This case study serves as a testament to the transformative impact of proactive plan management and the value of strategic consulting collaboration. 

Contact our institutional retirement consulting team for more information on how to optimize your retirement plan, increase financial efficiency and enhance benefits for your plan participants. 

Baker Tilly Wealth Management, LLC (BTWM) is a registered investment advisor. This information should not be construed as a recommendation and BTWM makes no warranties with regard to the results to be obtained from its use, or whether any expressed course of events will actually occur. BTWM does not provide tax or legal advice. BTWM is not an attorney. Estate planning can involve a complex web of tax rules and regulations. Consider consulting a tax or legal professional about your particular circumstances before implementing any tax or legal strategy. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Baker Tilly Wealth Management, LLC is controlled by Baker Tilly US, LLP. Baker Tilly US, LLP, is an independently owned and managed member of Baker Tilly International. © 2024 Baker Tilly Wealth Management, LLC