Plan Selection Criteria
By gaining a solid understanding of basic plan design principles and parameters, you will be better positioned to offer up ideas on ways to effectively manage plan costs. For example, the matching contribution formula under a 401(k) plan can often be modified in a manner that will increase plan participation without incurring greater out-of-pocket funding costs for the employer.
Any overview of cost-control measures would be incomplete without a discussion of competitive bidding. You should consistenly look to get the best bang for their buck. And, since various plan providers excel in distinct products and market segments, it is possible that you will need to develop relationships with more than one primary plan provider. When seeking out bids, you will learn about the strengths and weaknesses of various plan providers while also helping employers shop for the best possible solution.