2024 Regional Summits | Advanced Plan Pricing

Christian Cardenas, RFP Systems Manager for RPAG, and Lizzie Moye, Institutional Sales Director for Transamerica, provided a wealth of knowledge on advanced plan pricing and benchmarking strategies. The session was filled with useful tips, structured guidance, and real-life examples to help advisors enhance their benchmarking meetings.

Christian and Lizzie kicked off the session by discussing the value of having a well-structured meeting plan. Christian highlighted the need to practice due diligence, which involves learning about the client's requirements and choosing between a B2 report for preliminary work and a B3 report with a comprehensive lineup. He also emphasized how important it is to use the appropriate, committee-approved version of the services questionnaire. Lizzie added that knowing the unique features and needs of each plan is crucial. She shared insights from Transamerica's internal processes when responding to RFPs, stressing the importance of gathering as much comprehensive information as possible. This thorough approach ensures that Transamerica can provide the most accurate and competitive pricing, tailored to the specific characteristics of each plan.

A portion of the conversation focused on understanding and handling unique plan features and fees. Christian stresses that doing homework on the incumbent's structure to avoid surprises, such as cash restrictions on fund movements, can be very beneficial. Lizzie discussed Transamerica's flexibility in dealing with Market Value Adjustments (MVAs) and other fee-related considerations, illustrating how they tailor their approach to meet the specific needs of each client.

As the sessions continued on, the subject of managed accounts and SDBAs was brought up. To prevent duplicate charging, Christian offered advice on how to properly include these assets in benchmarking reports. Lizzie assured that Transamerica remains flexible in their fee structures and open architecture, accommodating various scenarios to best meet the advisor’s and client’s needs.

Christian underlined the significance of checking the accuracy of proposals from both the incumbent and bidders in order to ensure a fair comparison of rates. By being thorough, mistakes that could compromise the results of a benchmarking exercise can be avoided. Lizzie highlighted that to keep their offers competitive and in line with market norms, she collaborates with advisors and relationship managers. Working together makes it easier to manage internal procedures and provide the best results for clients.

The session came to a close with a discussion of fee reductions and strategic considerations. Some considerations Christian suggested include removing bidder identities from view to preserve neutrality and guarantee fair competition. To give a clear and thorough comparison, he also suggested integrating proactive concession pricing in your analysis and putting it side by side with the incumbent's rates. Lizzie stressed the value of customer feedback in enhancing their offerings and determining Transamerica's position in the market. She urged advisors to share information about how their bids stack up against others so they may improve their strategy and submit stronger bids in the future.

Tune into the full video for a comprehensive guide for advisors looking to excel in advanced plan pricing and benchmarking. Their helpful tips, insightful examples, and focus on careful planning and precise comparisons offer a useful framework for running effective benchmarking sessions. Advisors can become more competitive in the retirement plan market and increase their revenue by utilizing the knowledge and tactics discussed in this session.

Check out the presentation slides here!

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