The first-ever “401(k) Customer Experience Guarantee” is set to go into effect on March 1, 2025 at Human Interest, featuring a number of ambitious service-related promises for plan sponsors and plan participants.
“We know the stakes are high for both administrators and participants who trust us with their futures. That’s why we’re raising the bar for all customers.”
Rakesh Mahajan, Human Interest
The San Francisco-based full-service 401(k) and 403(b) provider focused on the small and medium-sized business market said in a press release today it is “redefining the retirement industry by revolutionizing what it means to commit and care for customers.”
The new guarantee will be extended to all customers, regardless of size. “Human Interest is making a bold commitment to participants and administrators through a transparent pledge to deliver outstanding, fast, reliable service with accountability,” the release states.
The new program is meant to address an old issue. “For too long, 401(k) customers have experienced frustrating delays and subpar service,” the release said. Recognizing the urgent need for greater accountability across the retirement savings industry, Human Interest took a hard look at service and support policies—including its own. Now, the company says it’s “going all-in on accountability” and setting a new standard for transparency and customer service.
“The ability to retire with peace of mind is a really big deal,” said Rakesh Mahajan, Chief Revenue Officer at Human Interest. “So why has it been an industry standard to leave people on hold, or worse, not even pick up their calls? At Human Interest, we know the stakes are high for both administrators and participants who trust us with their futures. That’s why we’re raising the bar for all customers.”
Guarantee program specifics
The Customer Experience Guarantee going into effect Saturday includes specific, measurable service commitments, and the company said it has plans to improve guarantees year-over-year.
For plan sponsors, the commitments include:
• 100% of an administrator’s inquiry submitted through the Human Interest Support Center will receive a non-automated response within four business hours.
• 100% of a plan’s contributions will be processed within 5 business days of running payroll.
For plan participants:
• 100% of a participant’s distributions will be sent to their bank accounts within 2 business days.
• 100% of a participant’s calls will be answered within 5 minutes during business hours.
• 100% of a participant’s initial inquiries submitted through the Human Interest Support Center will receive a non-automated response within four business hours.
And if the company doesn’t deliver on its promises, customers—plan sponsors or participants—will be compensated. If at any time these standards aren’t met, Human Interest will provide plan sponsors 50% off their next invoice, and participants will be eligible for a $25 gift card. Participants are eligible for a maximum of four successful claims per calendar year with a limit of one claim per month. For plan sponsors, the discount applies to monthly administrative and per employee fees; maximum cumulative discount may not exceed $5,000 per calendar year with a limit of one claim per month.
Why guarantee it?
Today’s release said a driving factor behind the Customer Experience Guarantee is Human Interest’s commitment to being there for people when their lives dictate a need for their funds, whether it’s as they reach retirement or before.
“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. They shouldn’t have to deal with unnecessary delays or inefficiencies,” Mahajan said. “That’s why we’re guaranteeing exceptional service and challenging the rest of the industry to meet these higher standards.”
“Typical timeframes for legacy providers can take days—or even weeks—to process distributions…”
Rakesh Mahajan
Human Interest calls the commitment “an essential and overdue evolution for the industry.” Citing data reported by PBS, more Americans are making hardship withdrawals from retirement accounts than ever before. Receiving a check from a 401(k) provider can take up to 15 business days—assuming a person can get in touch with their provider in a timely manner.
“Times are tough, and calamities like hurricanes, fires, and other disasters are all too frequent. When Hurricane Milton hit Florida, many homeowners needed their retirement plans to cope with the destruction,” Mahajan added. “As customers called us, we were able to process their requests and deposit funds into bank accounts within two days so they could start rebuilding their lives. Typical timeframes for legacy providers can take days—or even weeks—to process distributions via the faxing of paper forms and checks being delivered by mail, leaving people sitting and waiting for help. Everyone deserves better, so we’re doing something about it.”
Tech efficiencies make it possible
With its ambition to distance itself from legacy providers and blaze a more customer-centric trail, Human Interest said it has built a streamlined, technology-driven system appropriate for present-day life.
The company boasts it can seamlessly process payroll contributions, handle inquiries faster, and ultimately, provide participants with timely access to their funds.
For example, 75% of all payroll contribution files are automatically pulled by Human Interest without any intervention from administrators, saving them up to 40 hours annually and reducing errors. In 2024 alone, Human Interest processed nearly one million contribution files, with 95% processed in three days or less, and nearly 200,000 distributions, with 75% of distributions completed in under 48 hours.
Today’s announcement comes just over a year after the company, founded in 2015, opened its Center of Excellence in Lindon, Utah, which houses nearly all of Human Interest’s 250+ employees focused on customer service. “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.”
SEE ALSO:
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• ‘Ask ALI’ Debuts to Help Americans Grasp Retirement Income Planning Concepts
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
