Plan Sponsor Services

Retirement Plans That Work

We help you optimize your retirement plan options to meet your goals as a plan sponsor with the least risk and cost to the business and your employees. Talk to us about Defined Contribution, Defined Benefit, a combination Defined Benefit and Contribution plan or a Collective Investment Fund. 

Our services include:  Benchmarking: Fees, Performance and Services; Integration of Service Provider Proposals for Detailed and Summary Comparisons; Investment Advice and Management; Plan Sponsor and Employee Education and Financial Planning; and recommending Service Providers who have met our rigorous business practices standards.

We Bring Only “Best in Class” Providers to the Table

• Actuarial Services

• Administration

• Benefit Consultants

• Erisa Compliance Consulting

• Fiduciary Consulting

• Plan Design Defined Benefit Plans (Pension Plans)

• Plan Design Defined Contribution Plans (401K, SEP IRA)

• Plan Design Combined Defined Benefit/Defined Contribution Plans

• Portfolio Construction

• Recordkeeping

• Custodian Services

• Trustee Services

What is the best 401(k) service delivery model?

Bundled, Alliance, or Open

The continuum runs from bundled to unbundled, or an "open architecture" approach.  Typically insurance companies and brokerage firms are promoting the bundled approach.  The benefits of simplicity and the convenience of one stop shopping are promoted. The other extreme is daunting, because it means that the plan sponsor must be the integrator and that implies a lot of responsibility and work. A third common delivery model is sometimes referred to as an "alliance" model where one vendor bundles a number of the services but forms one or more partnerships to provide some of the services. What is common is that the recordkeeping and administration services fees are often subsidized by the investment partners through 12(b) 1 fees or revenue sharing. 

What if there was a service model that provided the best of each without any of the drawbacks? That is the model that is in the best interest of plan sponsors and plan participants. 

Putting the Spot Light on Hidden Expenses and Risks

The problem with the bundled and alliance models is that they may be full of extra expense and risk that isn't obvious. For instance, it is a common misconception that fiduciary liability can be outsourced. It can't. When one party is revenue sharing with another, the costs are not transparent. The costs are hidden in a reduction of the investment performance. Regulatory reform is in process to improve transparency. This will shed light on excessive fees and inappropriate investments in 401(k) plans, but that will take some time to become law. What can a plan sponsor do now?  

Open architecture solutions are far superior to bundled or traditional “alliance” models for the following reasons:

• Transparency

• No conflicts of interest

• Lower cost

• Better service

• Better investment choices (in terms of risk, performance and fees)

• Ease of switching to more competitive provider if necessary

“RIAs Gaining in Market for Small 401(K)s”

“RIAs are winning more plan sponsor accounts because they are seen as non-biased advisers who can offer best-of-breed solutions,' Ms. Varas of Financial Research Corp of Boston said, noting that “advisers are particularly successful in the small-business market because larger fund companies can't profitably serve many small businesses.' Per Tom Modestino of Cerulli and Associates. “An RIA has nothing at stake. Their business is all about finding the best solutions, regardless of fund or any commission. Pricing is a bit of a shell game, but RIAs make it simple and transparent. It's a better non-conflicted situation.'” 

InvestmentNews July 16^th, 2007

This dynamic regulatory environment creates risk and opportunity for plan sponsors.  Work with us to solve the puzzle, with confidence. 

Take control

Gain comparison data at no cost and with no obligation by sending us your basic plan information. We will be able to determine if we are a contender for competing for your business. Your information will be treated confidentially. Click here for the “Request for Information Form.” Simply complete the form and we will prepare a preliminary recommendation for your review.

Take control. Schedule a no-obligation discovery meeting today.

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