The theme I found running through the September issue was service to our clients. It all started with EBA's Employee Benefit Adviser of the Year, George Danusis (A reformed state of mind). Congratulations George! The "servant's heart" that he has is an important solution to health care reform. By talking with his clients and insureds about how a plan works and what fits them best, he is using one of the best tools to control cost: education. Service to a client should start with spending time explaining how each benefit plan fits into the bigger picture. It takes time to educate, and educate we must. We benefit advisers know how plans work - do your clients?

More than price

Service comes into play in the limited benefit plan arena as well (Making the most of mini-med Plans). I think these plans are great and fill several niches in solving cost/coverage issues. I agree that these plans are not replacements for a full-blown medical plan, but they do have some advantages. Our service requirement for these plans is to make sure that employers know how they work and that employees know what they are buying. The low cost of these plans is very attractive, and some employees just buy on price and then are surprised by the coverage limitations. A plan is only as good as how well the employees understand it. So our job as advisers is to provide great service in explaining the plan, creating simple effective plan summaries, and make sure there is an effective enrollment/education strategy in place.

No to commoditization

It's service plain and simple in the article 401(k) sponsors more likely to change advisers than record keepers. Employees need help and hand holding in these troubled economic times. As the article says, advisers need to be there at least quarterly to talk options, strategy, and sometimes to just listen to concerns. One-on-one time can add to your value as a trusted and important member of your client's retirement plan team. I also saw opportunity for 401(k) recordkeepers in this article. I never like to see the word "commoditization" of anything. That leads me to think these services are being purchased on price alone. What is one way to shift the focus off of price? You guessed it - service!

I was holding an enrollment/education meeting at a client's office last week, and one of the employees said, "We sure like working with you, you always come by and help us. Before you, we didn't even know what our old adviser looked like." I say this because of the importance of education in 401(k) plans (Changes needed in DC retirement plans). Instead of automatic enrollments, I think face-to-face meetings and talking with participants is the key to plan success. People want to feel comfortable in what they've chosen. A good adviser has tools in place to communicate effectively and give the presence that is needed to help employees and employers. Do your plan participants know what you look like?