Sample Performance Standards

Transcription

1 Sample s Within the contract, performance standards or expectations should be established. These standards should be as specific and detailed as possible to avoid future misunderstandings The documented standards also become the basis for developing a service agreement between you and the vendor. Once you have developed the standards and presented them to the vendor, you can then begin to formulate how you intend to measure actual performance against expected performance. In essence, you are developing a performance appraisal for your vendor that has many similarities to developing a performance appraisal process for employees. Develop specific, clear measurable standards Determine how performance will be measured Communicate the standards and methods of measurements The table on the following pages includes a process or service along with a possible standard that might be used to assess actual performance against expected performance:

2 I. Phone Center Speed of Answer Call Abandonment Rate Less than 2%. VRS Availability Issue Resolution 100% of all calls will be answered immediately by the Voice Response System. 90% of all calls opting out to a Participant Service Representative will be answered within 20 seconds. With the exception of routine maintenance, VRS will be available 99% of the time. 95% of participants requiring follow-up calls will be contacted within 2 business days of initial inquiry. 95% of all issues will be resolved within 3 business days of receipt of all required information. 100% of all issues will be resolved within 5 business days of receipt of all required information. II. Plan Administration Data ing Plan sponsor data files will be processed within 3 business days of receipt of valid, readable files. Invalid or unreadable files will be reported to plan sponsor within 24 hours. Plan sponsor will be provided with activity reports related to processing data files within 3 business days of receipt of valid, readable files. Plan Sponsor Reporting 98% of standard plan sponsor reports will be mailed within 20 business days after the close of the reporting period. 90% of all ad hoc reports (of reasonable complexity) will be mailed within 7 business days of plan sponsor request.

3 III. Defined Benefit Services Benefit Estimates & Final Calculations Pension Distributions Literature Distribution 95% of all confirmation statements of automated benefit estimates will be mailed within 3 business days of request. 95% of all confirmation statements for automated final benefit calculations will be mailed within 5 business days of receipt of indication of separation from service and final earnings information from the plan sponsor (if active), and all required participant paperwork. 95% of all confirmation statements for manual benefit estimates will be mailed within 5-7 business days of receipt of all information required to complete calculation. 100% of all benefit estimates and calculations will be accurate (assuming complete and accurate data). 98% of all monthly pension distributions will be mailed on the date mutually agreed upon by Fidelity and the client. 100% of all pension distributions will be accurate. 98% of all monthly pension funding reconciliations will be completed within 5 business days prior to each month s end. 95% of all literature requested will be mailed within 5 business days of request.

4 IV. Defined Contribution Services Quarterly Participant Statements Quarterly ADP/ACP Tests Literature Distribution 100% of all statements will be distributed by the 20 th of the month following quarter end. Tests will be completed within 15 business days from the request. 95% of all literature requested (402(f) notices, investment return information, and confirmation statements) will be mailed within 3 business days of request. V. Health & Welfare Services Transactions Carrier Files Literature Distribution ID Card Fulfillment 90% of participant-directed transactions (family status changes, terminations, COBRA and HIPAA events) will be processed and confirmation statements will be mailed within 5 business days of receipt of all required information. 1 Excludes annual enrollment, which is processed on a pre-determined batch schedule. 90% of all carrier files will be sent on the scheduled date. 95% of all literature requested (HIPAA certificates, Retirement kits, COBRA notices, and confirmation statements) will be mailed within 5 business days of request. Accurate ID cards will be mailed to employee s home address of record within 10 working days from date of new hire or other change. It is important that the objectives and measurements you establish be mutually agreed upon in order for them to be used to develop a performance agreement signed by each party. The performance agreement typically contains financial penalties for performance below the agreed upon acceptable level. 1 Excludes annual enrollment, which is processed on a pre-determined batch schedule.

5 Service Identify any account/fund adjustments and provide participant list of account/ fund adjustments 99% of payroll data errors are discovered through edit process within 24 hours of receipt of payroll transfer and list of needed account fund adjustments is made Measurement The list is provided via to no later than three business days from the payroll processing date by which the need for adjustment was discovered Proposed Fee Reduction If standard not met $5,000 if list is not provided to Manual loan repayments 98% next scheduled post after check clearance Manual check log $5,000 Complete annual profit sharing allocation calculation Two business days after final data and input have been provided Final allocation test document provided to for review and final sign off Post quarterly company stock dividends to participant accounts Next business day after receipt of data and all information from Final purchase confirmation and quarterly service review 000 Return phone calls and s from company benefits staff 95% within 24 hours of receipt of or phone mail and TPA maintain a log of calls/ s Respond to requests made by company benefits staff for plan/participant information not available to benefits staff through other means, where requests are in writing ( , Fax Letter) 95% within 24 hours of receipt and TPA maintain a log of benefits staff requests and TPA 000 Payroll data feedback - TPA to 100% transmitted as scheduled or hardcopy on next business day, and 100% content accuracy Daily file transmission verification log and participant feedback Mailing of any plan literature, transaction confirmations and participant checks 98% mailed within two business days of release Call center/internet and VRS log/quarterly meetings Edit and posting of payrollbased contributions/loan repayment Initial edit completed one business day after receipt of payroll feed from. Posted to recordkeeping system within two business days of receipt of payroll feed from Transaction file headers/ quarterly service review $25,000

6 Service Participant survey results on the call center service 90% of participant are 5, 6, 7 Measurement Quarterly participant survey Proposed Fee Reduction If standard not met Participant survey results on the on the internet applications 90% of participant are 5, 6, or 7 Quarterly participant survey Participant survey results on the IVR 90% of participant are 5, 6, 7 Annual participant survey benefits staff survey results (periodic survey completed by staff) 95% of are 5, 6, 7 Quarterly survey Monthly plan-to-trust trust reconciliation performed and reports delivered to Within 10 business days of receiving the trust statements Reports delivered to $5,000 Identifies plan-to-trust reconciling items and achieves resolution of such items TPA raises items to the attention of both Trustee and and achieves resolution before delivery of next following monthly reconciliation report. Quarterly service meeting/monthly reports which clearly identify reconciling items and/or adjustments $25,000 Provide the Statement of Financial Accounting Standard No. 87 footnote disclosure information Five business days from the receipt of all requested data Report delivered to Error-free overnight trading processing All electronic investment fund directions received by 4:00 PM (E.S.T.) will be processed same day, receiving that day s closing NAV, and will be 100% accurate in execution of the net purchase or sale orders for each fund pursuant to the plan sponsor and participant directed transactions Record-keeping system via plan sponsor online system and incident of participant complaints $25,000 per error plus will fund any participant account losses resulting from error

7 Service Identify participant account record-keeping errors made by TPA and correct such errors When participant account errors are discovered by, a participant or TPA, identify scope of error(s); affected participants; gain or loss to account resulting from error; identify source of error(s)/ cause of error(s); propose correction method including funding approach (if applicable); survey results of SERP team members involved in correction process should result in satisfaction scores that clearly indicate s satisfaction with TPA s responsiveness in correcting the errors. Measurement Survey conducted within 30 days of error resolution. Quarterly meetings service Proposed Fee Reduction If standard not met Timing for providing the annual valuation report for the defined benefit plan(s) Four weeks from receipt of complete information Report delivered to $5,000 Complete ADP Test Projection of ADP test completed within five business days of receiving compensation data from. Final ADP test completed within five business days. Tests contain no calculation errors. Test reports delivered to