Nuts & Bolts: Requests for Proposal

Securing a retirement plan advisory role often begins with an adviser completing a successful response to a request for proposal from a plan sponsor. While the RFP process can be demanding, it also presents an invaluable opportunity for advisers to showcase their expertise, client-centric approach and value proposition.

PLANADVISER turned to industry expert Mark Olsen, managing director of PlanPilot, to answer common questions from plan sponsors about RFPs. Olsen has more than two decades of experience in providing institutional retirement plan consulting to 401(k), 403(b) and defined benefit plans.

What are RFPs from plan sponsors?

Requests for proposal are a cornerstone of the decisionmaking process for retirement plan sponsors looking to evaluate potential service providers. Olsen describes RFPs as “a written instrument designed to help plan sponsors determine who might be a good fit to provide services to their retirement plan.”

RFP responses allow sponsors to assess various advisers based on their qualifications, expertise and alignment with the plan’s specific needs. Olsen emphasizes that well-structured RFP responses are vital for achieving successful partnerships.

What does a retirement plan adviser need to know about RFPs?

For advisers seeking to win business through RFPs, authenticity and clarity are crucial. Olsen recommends that advisers “lead with your strengths and be succinct in your responses.” He highlights the importance of differentiating by focusing on unique capabilities.

“For us, it’s about talking about our investment acumen that’s coupled with strong client service,” he says. “Putting clients first has been a big part of how we’ve been successful in earning trust during the RFP process.”

Providing real-world examples can also help advisers make a stronger impression. Olsen says using case studies or examples of how advisers have supported similar clients tells their story in a relatable, impactful way. Advisers should craft responses that clearly outline their approach to client relationships and their expertise in working with similar-sized plans.

How do RFPs relate to clients and business?

RFPs play a dual role in the industry: Soliciting proposals allows plan sponsors to evaluate potential partners, while the chance to respond to RFPs is a growth tool for advisers.

“It’s an optimal way to grow our client base,” Olsen says.

By responding thoughtfully and thoroughly, advisers can demonstrate their ability to meet the sponsor’s needs and improve retirement outcomes for participants. Olsen encourages advisers to provide concrete examples of success, such as how they have enhanced participant outcomes or helped clients achieve a more secure retirement.

Plan sponsors also benefit from RFPs by gaining insights into how advisers can align with their goals. Olson points out that RFPs often focus on key criteria, such as client service models and experience with similar-sized plans, ensuring sponsors find the right fit for their organization.

What are common misperceptions or mistakes made when dealing with RFPs?

Mistakes in the RFP process can happen on both sides. Olsen identifies two primary areas of concern: the creation of the RFP itself and the adviser’s response. For plan sponsors, he stresses the importance of tailoring the RFP to their specific needs.

“If you’re a smaller plan sponsor, you need to focus on aspects like client service and the number of clients similar to your size,” he states. “Otherwise, you might end up with a provider that prioritizes larger clients, which could impact the level of service you receive.”

On the adviser side, Olson underscores the need for clarity and transparency.

“Be very direct about what your service model is, what it isn’t, and how you approach working with clients,” he advises.

What does the future look like for RFPs?

Technology is reshaping the RFP landscape, and Olsen expects that change to accelerate. Tools that streamline information-gathering and response evaluation are becoming more common, allowing sponsors to make more informed decisions efficiently.

Looking ahead, Olsen predicts that artificial intelligence will play a larger role in the RFP process, as AI can provide insights into what sponsors are looking for and help analyze responses more efficiently. He says while AI may not be a perfect solution, it offers significant potential to pinpoint key differentiators and streamline the evaluation process.

As the RFP process evolves, advisers must stay adaptable and leverage both technology and personalized responses to remain competitive.

Olson’s advice is to “focus on authenticity, lead with your strengths and provide clear, concise and relatable responses that align with the sponsor’s needs.”