How to Unlock the Full Potential of Your K–12 Retirement Plan

1. Define your goals.  

Identify the specific outcomes you want to achieve — such as improved participant services, streamlined administration, cost savings, enhanced investment options, and increased plan efficiencies — to help guide your decision-making process.  

2. Evaluate vendor performance.  

Evaluate the performance of your existing vendors to identify opportunities for consolidation that can deliver better results. Focus on simplifying plan administration and the enrollment process, along with improving financial retirement education for employees.  

3. Analyze costs and fees.  

Conduct a thorough analysis of costs and fees associated with keeping multiple vendors versus a single vendor. Look closely at the total administrative fees, investment management fees, and recordkeeping costs, then consider potential fee reductions or cost savings.  

4. Include the school board.  

The school board plays a key role in setting policies and making decisions that affect the school district. As such, it’s critical to help board members understand why the changes are taking place and how they will benefit the district’s employees. Bring them into the discussions as early as possible to ensure their collective voice is heard.

5. Engage union representatives.  

Because unions advocate for the interests of teachers and other staff members, it’s important to engage union representatives early in the process to ensure they understand the “why” and “how,” and become advocates for change. Their support will go a long way toward garnering the support of district staff members. 

6. Work with a retirement plan consultant.  

Retirement plan consultants can provide valuable expertise and guidance to ensure the plan is designed and implemented in a way that meets your fiduciary responsibilities and legal obligations. A consultant also plays a key role in selecting and monitoring investments, maximizing employee engagement, managing plan costs, and providing ongoing evaluation.  

7. Communicate clearly and consistently.  

Embrace the power of communication. Changing a plan can be confusing or upsetting to some employees, so it’s important that you take steps to ensure they understand why and how it's changing. Offer group meetings, one-on-one meetings, online resources, and print materials. If possible, have a communications team that includes board members, union representatives, and employees.  

Vendor consolidation can be complex, but taking smart action steps can deliver a smooth transition to an improved retirement plan centered on your district’s unique needs and requirements.