“Best Practices” for plan fiduciaries is generally considered conducting a comprehensive cost, services and investment platform review every three-to-five years. In light of two very significant regulatory requirements (408(b)(2) and 404(a)(5)) taking effect in 2011, conducting such a formal process is even more critical now.
Our Fiduciary Due Diligence covers 5 core areas that will assist you in meeting important regulation requirements.
Plan Management Review
A key component of our process focuses specifically on plan cost and services. In order to properly assess the Plan, we will undertake a detailed review process covering six major areas:
* Investment Management
* Recordkeeping
* Total Plan Costs
* Compliance Services
* Technology/Participant Access
* Employee Communications
Benchmarking
ERISA and the Department of Labor make clear that plan sponsors must make sure that plan fees are appropriate and reasonable for the quantity and quality of service being provided. Our process assists you in meeting this challenge by:
* Building an “apples-to-apples” comparison group
* Collecting detailed information on fees, expenses and revenue-sharing arrangements
* Examining you plan’s complexity
* Examining you participants’ success measures
* Examining your fiduciary oversight against best practice standards
* Examining plan-level and participant-level services
* Examining your current vendor services against services standards
The end result of this meticulous methodology is a premier, comprehensive service that can handle any fee structure as well as quantitatively evaluate different service areas.
Investment Review
In our experience, even “transparent” record keeper and custodial arrangements entail some level of conflict of interest. As an independent party, we are able to objectively assess and evaluate the range of investment opportunities available from your provider; we compare those against the broad universe of alternatives using multiple objectives as well as proprietary ranking systems and work with you to craft and maintain an investment process involving rigorous protocols and standards.
Investment Advisor/Broker Assessment
We will conduct an in-depth review and assessment of your current investment advisor or broker to ensure that they are disclosing fees and commissions and being held to a fiduciary standard.
Participant Services Assessment & Management
We will work with you to develop an integrated communications strategy that combines whatever resources your retirement plan vendor can offer with sophisticated, detailed assessment of participant needs using resources specifically selected to address them through direct, one-to-one communications focused on the ultimate objective of a participant-directed retirement plan: Enhancing the Participant Experience.