As many employers are shifting away from traditional pension plans and towards defined contribution retirement savings plans (such as 401(k)s and profit-sharing plans) they must deal with the significant fiduciary responsibility associated with these types of plans.
There are millions of Americans who invest their entire retirement savings in defined contribution plans. As assets and participant numbers grow, so does the responsibility of those individuals who oversee these retirement plans.
In 2006, the Pension Protection Act was signed into law, providing plan sponsors with even more options and more regulations to evaluate.
Plan sponsors must take their fiduciary responsibility seriously, but they may not know what that responsibility is. An independent plan consultant,
who understands fiduciary responsibility and specializes in helping plan sponsors, can help mitigate risk by establishing prudent policies and procedures to:
- Analyze plan fees and expenses . Our mission is to help plan sponsors understand their plan expense structure and negotiate reduced fees and expenses. Through the use of our Market Assessment, we identify the true cost of the retirement program and negotiate with service providers to recapture excess revenue sharing. This typically results in a 20%-50% annual reduction in plan fees and expenses.
- Benchmark plan investments. Our mission is to help plan sponsors develop a prudent proactive approach to investing. Our Investment Selection and Review process establishes how the plan will select, monitor and de-select plan investments.
- Educate employees. Our mission is to help plan sponsors develop, implement and monitor proactive, targeted employee education campaigns that generally strive to result in higher participation and deferral rates, increased diversification of assets, a better understanding and appreciation of the retirement program, and ultimately a more secure retirement for participants.
- Establish prudent policies and procedures. Our mission is to help plan sponsors protect themselves by assisting in the implementation of prudent policies and procedures, which include the formalization of retirement plan committee duties and investment policy statements.
- Maximize vendor relations. Our mission is to help plan sponsors understand the variety of services and features that vendors offer so that they can maximize the utilization of these services and provide the best retirement plan possible to employees.
- Evaluate plan design options. Our mission is to help plan sponsors understand various plan design features and how those features might impact their plan based on their unique employee demographics. In addition, we strive to keep our plan sponsors up to date on industry trends and best practices to ensure that their plan remains competitive in today’s marketplace.