Corporate & Institutional
401(k) Advisory Services for Plan Sponsors
An experienced retirement plan advisor can help you navigate ERISA regulatory requirements and create a plan design to improve outcomes. Our comprehensive approach can help you satisfy fiduciary duties and reduce your administrative burden.
The Value of a Retirement Plan Advisor Relationship
- With the many complexities and risks associated with administering a retirement plan, plan sponsors should consider the benefits of hiring a competent advisor and other service providers to help fulfill the mandatory duties.
- A well-qualified advisor can help administer an employer-sponsored retirement plan in multiple ways, including:
- Plan Design: Determining key design provisions for the plan, including safe harbor provisions and selecting plan features, such as auto enrollment, auto escalation, or Roth 401(k) options.
- Fiduciary Governance: Providing educational materials on the plan sponsor’s core fiduciary duties and industry best practices.
- Investment Management: Drafting the investment policy statement, either as a co-fiduciary or discretionary investment manager, and assisting in the selection, monitoring and replacement of the plan’s investment lineup.
- Record Keeper Benchmarking: Performing periodic, independent evaluations of record keeper fees, services, and capabilities.
- Financial Wellness: Delivering content, tools, and support to employees that contribute to higher retirement plan participation rates, investment fluency, and financial wellness.
Solutions for Fiduciary Investment Coverage
1ERISA 3(21) fiduciary advisor—a paid service provider that gives investment recommendations but does not necessarily have discretionary authority to make the actual investment decisions. Instead, the 3(21) fiduciary advisor typically provides suggestions to the plan sponsor, who is free to accept or reject those recommendations and who must then execute the investment decisions for the plan. The plan sponsor and the 3(21) fiduciary advisor, therefore, share fiduciary responsibility.
2ERISA 3(38) investment manager—an investment manager who has been specifically appointed to have full discretionary authority and control to make the actual investment decisions. The manager may select, monitor, remove, and replace the investment options offered under the plan. The 3(38) must acknowledge its fiduciary status in writing.
Getting Support where it counts
Experienced professionals are available to work with businesses to assist in administering employer-sponsored retirement plans, decrease hard-dollar and soft-dollar expenses, and reduce fiduciary risk.
Plan Sponsor Questions for Consideration
- How often are you monitoring your investment fund lineup? Do you have an investment policy statement?
- Have you benchmarked your current plan to ensure you are in line with ERISA requirements?
- What are you (and your advisor) doing to educate your employees around retirement readiness?
- Is your plan providing the retirement outcomes you want?