Retirement plan provider Human Interest has unveiled a new customer service guarantee aimed at improving response times and processing speeds for both plan administrators and participants.
The pledge, which takes effect on March 1, aligns the firm with the retirement plan members and administrators it serves by offering financial compensation for failures to meet service standards.
The company’s commitment comes as 401(k) providers face growing pressure to avoid customer service delays, particularly when it comes to processing withdrawals and responding to inquiries.
Human Interest said it's addressing these concerns with strict service benchmarks, such as responding to all administrator inquiries within four business hours and completing distributions to participants within two business days of their submitting a request.
Rakesh Mahajan, chief revenue officer at Human Interest, called out the tendency for legacy plan providers to "leave people on hold, or worse, not even pick up their calls."
“The ability to retire with peace of mind is a really big deal ... [W]e know the stakes are high for both administrators and participants who trust us with their futures," Mahajan said in a statement Tuesday."That’s why we’re raising the bar for all customers.”
Under the new policy, administrators who do not receive a response within the promised timeframe will be eligible for a 50 percent discount on their next invoice. Participants who meet delays will receive a $25 gift card.
Human Interest’s pledge comes amid a rise in hardship withdrawals from retirement accounts. Citing a PBS report, it highlighted the growing number of Americans dipping into their retirement savings early, often during financial emergencies.
Rachel Weker, senior retirement strategist at T. Rowe Price, told InvestmentNews in January that hardship withdrawals in 2024 were double that seen in the previous year, with the "vast majority" of funds taken out still not paid back as record levels of inflation takes a toll on participants. That extends a trend in a data report by the firm last year, which showed American workers across all age cohorts dipping into their 401(k) retirement savings.
Human Interest said it aims to shorten processing times for transactions, particularly in urgent situations such as natural calamities.
“Whether our customers need early access to savings or just want to talk to someone on the phone about their plan, it’s often during a critical moment,” Mahajan said. “They shouldn’t have to deal with unnecessary delays or inefficiencies.”
To help shorten processing times across transactions, Human Interest said it has focused on investing in automation. It claimed to save administrators an estimated 40 hours per year by automatically processing 75 percent of payroll contribution files. In 2024, it claimed to have processed nearly one million contribution files, 95 percent of which were reportedly completed within three days.
“Our investments in automation and customer experience have positioned us to deliver ‘enterprise-grade’ service for all customers, irrespective of their size,” Mahajan said. “This is just the beginning of our commitment to continuously improving and exceeding customer expectations.”
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