How Retirement Plan Recordkeepers Support Plan Sponsors and Participants

Corporate retirement plan sponsors regularly evaluate investments, monitor fees, and manage fiduciary responsibilities. Yet one of the most valuable resources available to many plan sponsors is often overlooked: the plan's recordkeeper.

While recordkeepers are commonly associated with tracking participant balances and processing transactions, today's leading providers offer a much broader suite of services designed to support both plan sponsors and participants. In many cases, organizations are paying for capabilities they rarely use.

As retirement plans continue to evolve, plan sponsors should periodically assess whether they are fully utilizing the resources available through their recordkeeper relationship.

What a retirement plan recordkeeper does beyond administration

At its core, a recordkeeper maintains participant records, processes contributions and distributions, manages loan activity, and provides account access. These functions remain essential, but the role has expanded significantly over the past decade.

Recordkeeper services available to plan sponsors

Many recordkeepers now serve as a strategic advisor by offering:

• Participant education and enrollment support
• Financial wellness programs
• Retirement readiness analytics
• Managed account solutions
• Plan health and engagement reporting
• Benchmarking and industry insights
• Fiduciary support resources
• Cybersecurity education and account protection tools

For plan sponsors facing increasing expectations from employees and regulators alike, these services can help strengthen plan effectiveness without requiring additional internal resources.

How recordkeeper resources can support participant engagement

One of the most impactful areas where recordkeepers can add value is participant engagement.

Many employees want to save for retirement but struggle with competing financial priorities, investment decisions, or simply understanding how much they need to save. Recordkeepers often provide a variety of tools designed to address these challenges.

Participant education and financial wellness resources

• Retirement income calculators
• Personalized savings recommendations
• Educational webinars and workshops
• One-on-one guidance resources
• Financial wellness platforms
• Student loan and debt management education
• Goal-based planning tools

When these resources are actively promoted, plan sponsors may see improvements in participation rates, deferral levels, and overall retirement preparedness.

The key question is simple: Do your employees know these resources exist?

If the answer is "not sure," there may be an opportunity to improve communication and drive greater value from services already available.

How recordkeeper data can inform plan decisions

Recordkeepers collect a significant amount of participant and plan-level data. When used thoughtfully, that information can help sponsors make more informed decisions.

Many recordkeepers provide reporting that can help answer questions such as:

• Are employees participating at appropriate rates?
• Which groups are least engaged with the plan?
• How many participants are on track for retirement?
• Are automatic features driving desired results?
• How does the plan compare to peers?

These insights may help sponsors identify gaps and opportunities before they become larger concerns.

For example, if reporting shows lower participation among newly eligible employees, a sponsor may choose to enhance enrollment communications. If retirement readiness scores are trending downward, additional financial education initiatives may be warranted.

Data alone does not improve outcomes, but actionable insights can help sponsors build a more effective retirement program.

How recordkeepers can support fiduciary governance

Retirement plan committee members face ongoing fiduciary obligations. While responsibility cannot be delegated away, recordkeepers often provide resources that help support the governance process.

Depending on the provider, these services may include:

• Committee education materials
• Regulatory updates
• Plan design analytics
• Meeting support resources
• Documentation tools
• Cybersecurity guidance

Sponsors should understand what support is available and how it can complement their broader advisory and governance framework.

A proactive approach can help improve committee effectiveness and support a more disciplined oversight process.

Questions to ask during a recordkeeper service review

If it has been several years since your organization reviewed its recordkeeper capabilities, now may be an appropriate time for a closer look.

Consider discussing the following questions during your next service review:

1. What participant resources are available but currently underutilized?
2. What reporting capabilities can help us evaluate plan health and participant outcomes?
3. What financial wellness tools are included?
4. What educational resources are available for our retirement committee?
5. How are other plan sponsors leveraging these services?

The answers may reveal opportunities to enhance the participant experience and improve plan effectiveness without changing providers or increasing costs.

How Brown & Brown can help evaluate recordkeeper services

A recordkeeper's role extends well beyond maintaining participant accounts. Today's providers offer a range of services that can help support employee engagement, improve retirement readiness, strengthen plan governance, and provide valuable data-driven insights.

For retirement plan sponsors, the question is no longer whether these resources exist. The question is whether the organization is fully leveraging them.

Taking time to understand and utilize the full capabilities of your recordkeeper may uncover opportunities to deliver greater value for both your plan and your participants.

Brown & Brown Retirement Plan Services

Our team works with plan sponsors to help evaluate service providers, improve participant outcomes, and support fiduciary best practices. If you would like to better understand the capabilities available within your current retirement plan structure, our team can help identify opportunities to maximize the value of your existing network.

To receive valuable insight and plan design alternatives that may improve outcomes for your organization, please contact a Brown & Brown Retirement Plan Services teammate using our secure form.

Investment Advisory services provided through Aurora Private Wealth, Inc., a Registered Investment Advisor. Certain representatives of Aurora Private Wealth are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC.