401(k) Plan Case Study

How an HVAC Company Reduced 401(k) Plan Fees and Increased Plan Effectiveness

How an HVAC Company Reduced 401(k) Plan Fees and Increased Plan Effectiveness

A local HVAC company based in Marlborough, MA offers heating and cooling services to residential, commercial, and industrial clients within Eastern Massachusetts. They were in search of a new 401(k) provider.

The owners place the well-being of each employee as top priority. While the business was experiencing growth and success, the company’s retirement plan was not of the quality the owners wanted.

The customer service department for their current 401(k) provider was not helpful according to both the employers and employees. Employees would frequently complain about the aggravation of trying to reach a live person on the phone. Moreover, the plan was extremely expensive when benchmarked to industry norms.

The goals of the owners were to provide current employees with a retirement plan that provided opportunities for a better financial future. Having a quality 401(k) benefit also helps attract new talent, especially in an industry that is hard to find quality workers.

Our Process & Analysis

We first analyzed the company’s old plan and made a few observations:

  1. The old plan was relatively expensive
  2. They were not receiving the level of customer service for their employees as they should
  3. The fiduciary compliance of their 401(k) company could be improved
  4. The investments within the plan were under-performing
  5. The investment selections were not properly diversified

Our solution

We implemented a new 401(k) for the company, becoming the fiduciary for the plan sponsor.

During the enrollment process, we met with each employee to introduce themselves. Then we assisted each employee with the transition and answered any questions they had.

The new retirement plan now offers several benefits.

  • The new retirement plan is now more extensive, with a variety of new investment options.
  • The new plan is significantly less expensive, saving the company thousands in fees.
  • The fiduciary compliance of the new plan is now set up above industry standards.

A Word from the Owner:

The owner expressed his thanks for Triton’s efforts in making the transition between 401(k) providers was a smooth one. The employees also expressed their appreciation for the personal service they have received.

Financial Focus

Bob Gustafson, Triton FinancialListen to Bob live on his weekly radio show every Wednesday at 10:00 a.m. on WCRN AM 830.

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