Foster & Foster is an independent actuarial consulting firm based in For Myers, Florida. Founded in 1979, Foster & Foster’s goal was to provide actuarial services to public retirement and other post-employment benefit programs. This allowed Foster & Foster to provide expert advice and support in all phases of the design and administration of retirement and post-employment benefit plans.
In 2005, Brad and Sandra Heinrichs acquired Foster & Foster from its founders, Ward and Eileen Foster. Brad pioneered the development of an online benefit calculator, making an indelible footprint in the public plan marketplace. This unique tool lets pension plan participants make more educated retirement decisions by allowing them to run benefit estimates for themselves well in advance of retirement.
To facilitate the growth of the firm, we expanded our services to provide actuarial services to other post employment benefit (OPEB) plans as required by Government Accounting Standards Board Statements No. 43 and 45. Foster & Foster also hired an FSA with over 20 years of experience in valuing postretirement medical and disability programs to strategically lead this practice. Now we consult to over 60 clients in this area.
To diversify our client base and to expand into the Midwest market, the firm opened an office in Lincolnshire, Illinois in 2008, and then subsequently acquired R.N. Blomquist & Company in July 2010, which is located in Oakbrook Terrace, Illinois. This acquisition broadened Foster & Foster’s services to include consulting for health and welfare funds, allowing us to provide clients with efficient and integrated services for all of their plans. Blomquist & Company has been a leader in developing creative cost-containment strategies for the last four decades, assisting health plans grapple with escalating medical costs and the evolution of delivery systems. The addition of Blomquist & Company’s expertise in Taft-Hartley funds also expands the knowledge base offered by Foster & Foster.
Foster & Foster grew from a one client firm to more than 250 clients today. We have remained a profitable and debt-free firm by providing quality work at the lowest possible cost.
At Foster & Foster, we strive to excel in five main areas:
Accuracy
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Our senior consultants are directly involved in the work performed for a client. This involvement assures that all our reports are customized to each client’s unique circumstances and delivered in a timely fashion. Our consultants are available to discuss their clients’ needs with Trustees and other Fund professionals. At least two individuals review each and every project to ensure its accuracy.
For actuarial reports, we use ProVal software, which is the best actuarial valuation software available. ProVal is PC-based rather than requiring costly mainframe systems. In addition, ProVal creates a detailed audit trail, which facilitates the exchange of information between actuaries, as well as ensuring accuracy. In addition, the audit trail allows us to provide extensive documentation to our clients.
Timeliness
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Meeting the needs of our clients is our top priority. Our specialized focus has resulted in economies of operational scales, enabling us to promise our clients:
- Pension Benefit calculations are performed in no more than 10 business days following receipt of all necessary information.
- Actuarial valuations are performed no more than 60–90 days following the receipt of all necessary demographic and financial data. Our clients receive their reports shortly after the beginning of their fiscal year.
- Annual reports are performed in no more than 60-90 days following the receipt of all required data.
For other projects, we work with the client’s schedule to ensure that projects are finished within a reasonable time frame.
Communication
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Our consultants and actuaries strive to clearly communicate essential information that requires client attention, including the requirements for the year and the status of the plan. Explanations of projections and forecasts for upcoming years and, if necessary, explanations for why a plan’s financial position has changed from prior years, are clear, concise and presented in easy-to-understand language. Additional details are always available, but we do not hide our product behind impenetrable jargon.
We also provide a customized newsletter service, through which we communicate to clients on matters related to their plan and benefits. These newsletters can be used to answer frequent participant questions, as well as to remind participants about their benefits and the rules governing their benefits.
Cost
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Foster & Foster prides itself on being among the lowest cost providers in the marketplace. We are unique among our competitors:
- Our organization is designed to minimize fixed overhead, allowing us to charge clients less than competitors do, while still providing clients with unparalleled service.
- Travel costs are split among clients whose meetings are in the same geographic area. Clients in the same area who coordinate their meeting schedules can save money.
- We provide impartial advice as to whether or not a client should undertake a project, based on whether that project will help the client achieve their goals or save money.
- Most of our work is performed for a fixed cost, which is agreed to before the project is begun, eliminated hidden charges and cost overruns.
- Our hourly billing rates are among the lowest in the industry.
- We adhere to our core values of honesty, integrity, respect and professionalism.
Value-Added Options
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Our experience with a large number of clients has allowed us to build a considerable database of information. This database gives us the ability to compare one plan to another in various areas, including benefits provided, eligibility rules, funding status, investment history, salary increases, contribution rates, etc. Many clients appreciate seeing how their plans compare to others of similar size, industry or demographics.
We provide a unique tool to our pension clients that allow participants to get immediate, private pension benefit estimates. Most of our clients find this to be an extremely helpful and useful tool.
Finally, the firm offers user-friendly projection tools that are useful for examining the results of changes in plan design or assumptions.