What’s the Problem?
Turner and Porter had previously bought a Benefits Plan that had a low upfront cost, however then prices rose dramatically in subsequent years. In addition to lack of cost containment, the account handling was impersonal and both the business owners and employees were finding the working relationship difficult.
What were we asked to do?
Penmore was asked to come in and provide a complete review of the program, the competitive framework, and work directly with the company on negotiation with carriers.
The objective was to make the program sustainable over the long term, negotiate increases in fees, and smooth out the costing to make the plan affordable and viable.
What did we actually do?
Penmore identified the following objectives
- Initiate a full review on current plan design, investment offering
- Increase employee engagement
- Increase plan participation
- Reduce cost increases to single digits per year.
Penmore re-marketed the plan to several competitors, including direct personal involvement with the carriers. Plan amendments were included to manage cost certainty and developed a better program at reduced cost than the previous carrier.
In addition, the involvement of key account leadership in the business meant that Turner and Porter management had direct contact with the program manager.
How did it work?
After the program was re-launched with Turner and Porter employees, there are regular employee updates, and a continuous communications program to ensure the benefits of the program are known by both management and the employees.
In addition there are Quarterly Review meetings with Human Resources, as well as an Annual Renewal Review meeting with management.
Over the last five years, rates have been stable rising less than 3% year over year.
Penmore Benefits Inc. is a consulting firm specializing in providing retirement and benefit plan management, focused on maximizing the return on your investment in benefits.
Penmore Benefits Inc. has earned a solid reputation over the years for providing effective solutions at affordable pricing, wrapped with the highest standards of personalized customer service. We take great pride in consistently delivering excellent service and advice, and our highly respected reputation is taken very seriously throughout our industry.