Vendor Management Course Outline

Lesson 1: Introduction to Vendor Management

  1. Introduction
  2. Reasons companies decide to use a vendor
  3. Type of vendor services
  4. Overview of vendor management process

Lesson 2: Different Vendors for Different Types of Plans

  1. General benefit vendors
    1. ERISA counsel
    2. Auditors
    3. Communication
  2. Retirement plan vendors
    1. Recordkeeper
    2. Trustee
    3. Investment manager
    4. Financial education
    5. Actuary
  3. Health care plan vendors
    1. Insurance company
    2. Health maintenance organization (HMO)
    3. Preferred provider organization (PPO)
    4. Claims processing
    5. Disease management
    6. Wellness programs
    7. Employee assistance programs
    8. Health screenings
    9. COBRA and HIPAA notices
    10. Dependent auditing
    11. Claims auditing
  4. Other plan vendors
    1. Dental
    2. Disability
    3. Prescription drug
    4. Cafeteria plan administration
    5. Cafeteria plan (Section 125)
    6. Flexible spending accounts
    7. Benefit statement
    8. Total benefits outsourcing (TBO)

Lesson 3: Preparing for Vendor Selection

  1. Initial stages
  2. Assessment of current services
    1. Survey
    2. Focus groups
  3. Baseline costs and services
  4. Needs assessment
  5. Scope and objectives
  6. Project plan and timeline
  7. Involvement of other departments
    1. Information technology (systems)
    2. Purchasing or procurement
    3. Accounting/payroll
    4. Finance
    5. General counsel
    6. Union
  8. Vendor selection team

Lesson 4: Request for Proposal

  1. Role of the RFP
    1. Identifying the services requested
    2. Providing information about the company
    3. Standard basis for comparison
    4. Specific questions
  2. Writing the RFP
    1. Length of the RFP
    2. Type of questions
    3. Who should receive the RFP
  3. Setting criteria
  4. Who to send it to

Lesson 5: Selection Process

  1. Evaluating RFP responses
    1. Scheduled conference calls with all vendors
    2. Written questions and responses
    3. Answer questions as they are received
    4. Presentations
    5. Determining the finalists
  2. Interviews
  3. On-site visits
  4. Final decision

Lesson 6: Fees

  1. Understanding the fee calculation
  2. Investment fees for retirement plans
    1. Mutual funds
    2. Annuities
    3. Actively managed accounts
  3. Soft vs. hard fees in pension plans
  4. Additional fees

Lesson 7: Systems

  1. Interaction of systems
  2. Shared data
  3. Security and privacy of data
  4. System support
  5. Internet access

Lesson 8: Liability, Indemnification and Fiduciary Aspects

  1. Clarifying responsibility
  2. Indemnification
  3. Multiple vendors
  4. Fiduciary responsibilities
  5. Appeals
  6. Interaction between vendors
  7. Fiduciary responsibilities

Lesson 9: Ongoing Vendor Relationship

  1. Reports
  2. Meetings
  3. Plan changes and modifications
  4. Service changes
  5. Auditing
  6. Evaluation of services and satisfaction

Lesson 10: Changing Vendor Relationships

  1. Changing vendor relationships
    1. Frequency of opening plan to new vendors
  2. Review process
  3. Transition
    1. Timing
    2. Interaction between vendors
    3. Potential "blackout" period
    4. Participant communication