Eliminating Service Provider Issues for a Private Accounting Firm
In this case study, we break down how October Three helped a private accounting firm stabilize contributions and deliver top-quality service.
Situation
A medical practice with three partners and ten staff sponsored both a 401(k) plan and a fixed-rate cash balance plan. After seven years, the cash balance plan experienced volatile funding, exacerbated by investment losses in 2022. Growing assets further amplified contribution swings due to a mismatch between the fixed crediting rates and actual investment returns.
Adding to their challenges, the partners were frustrated by slow responsiveness and insufficient answers from their current actuary, prompting a need for better service.
Approach
To address these issues, October Three shifted the cash balance plan’s fixed crediting rate to one tied to actual investment returns, reducing funding volatility and helping manage prior shortfalls. Plan servicing was also transitioned to October Three, providing better access to a servicing team and improved response times.
Results
This comprehensive approach not only stabilized the plan financially but also enhanced the overall client experience, ensuring the partners feel supported and confident in their retirement program. Results included:
Reduced funding volatility, resulting in consistent, predictable contributions aligned with actual investment returns
Increased partner confidence in the plan’s sustainability and long-term financial health
Eliminated service provider issues due to poor client service. Partners were more satisfied with the response time and October Three’s expertise.
Start Designing Your Plan Today
Whether you want to reward key executives, reduce tax exposure, or boost retention with long-term wealth-building benefits, a cash balance plan can help. Reach out to our team to request your free cash balance illustration today.