Public school optimizes 403(b) retirement plan

Client background and business challenge 

Our client, a public school district, recognized the need to optimize its 403(b)-retirement plan after seven years without a formal review of vendor relationships. With a focus on improving plan governance, reducing costs and ensuring operational compliance, the district sought a strategic partner to conduct a thorough evaluation.

The primary objectives were clear: identify opportunities for cost reduction, enhance participant support, streamline administrative processes and ensure the retirement plan adhered to compliance standards. The district engaged Baker Tilly Wealth Management’s retirement plan services team to lead this comprehensive plan review and implement strategic improvements.

Baker Tilly Wealth Management approach 

Our team began by conducting a detailed analysis of the 403(b) plan’s vendor relationships, administrative processes, plan design and investment platform. We analyzed the following:

• Cost
• Vendor negotiation
• Plan governance
• Operational compliance
• Participant education

Once we completed our analysis, we provided suggestions to enhance service delivery, reduce cost, implement a new governance structure, resolve compliance issues and improve participant education and participation. The district was pleased with our findings, and we moved forward implementing our suggestions.

Results 

Through our comprehensive approach, the district achieved significant cost savings, operational efficiencies and enhanced participant support:

Cost reductions

• Reduced administrative costs from 0.85% to 0.14%, saving the plan an estimated $248,500 per year
• Transitioned participants to a low-cost mutual fund open architecture platform, lowering the average investment expenses for all investments

Improved service and support

• Negotiated with the incumbent recordkeeper to provide 15 plus on-site support days annually, enhancing participant access to education and advice
• Enhanced governance and compliance
• Established a formal governance committee and Investment Policy Statement to ensure ongoing fiduciary oversight
• Resolved operational compliance issues by restating plan documents

Operational efficiencies

• Streamlined administrative processes, leveraging advanced technology to allow existing benefits staff to focus on strategic priorities
• Outsourced additional services to the recordkeeper, improving efficiency and service quality

Participant education and engagement

• Implemented enhanced education and advice campaigns to improve participant understanding and engagement with the plan as well as financial literacy

Conclusion

Our plan review project for this public school district’s 403(b) plan delivered a substantial return on investment. Key achievements included significant cost savings, improved compliance, operational efficiencies and enhanced participant outcomes.

Baker Tilly Wealth Management’s retirement plan services team provided the district with a sustainable framework for ongoing plan management, ensuring long-term success for both the district and its plan participants.

This case study demonstrates the value of strategic retirement plan consulting and the transformative impact of proactive plan management.

Contact our retirement plan services team for more information on how to optimize your retirement plan, increase financial efficiency and enhance benefits for your plan participants. 

Baker Tilly Wealth Management, LLC (BTWM) is a registered investment advisor. BTWM does not provide tax or legal advice. BTWM is not an attorney. Estate planning can involve a complex web of tax rules and regulations. Consider consulting a tax or legal professional about your particular circumstances before implementing any tax or legal strategy. The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought.

Baker Tilly Wealth Management, LLC is controlled by Baker Tilly Advisory Group, LP. Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms. ©2025 Baker Tilly Wealth Management, LLC