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Retirement Plan Strategies

As a retirement plan sponsor, there is a great deal of information you need to know in order to be in compliance with ERISA. These rules were enacted to protect the worker and the employer. Issues like plan fees have recently come under intense scrutiny, and, as a result, it's important to adhere to new disclosure rules.

The employer is ultimately charged with the obligation of maintaining their retirement plan for the exclusive benefit of the participants and beneficiaries. Plan fiduciaries do not need to be experts in every area and often hire other professionals to offer expertise. This, though, does not reduce their fiduciary responsibility. 

As a Plan Sponsor, you need to understand fees: who is paying them and whether they are “reasonable”, as defined by the DOL. If you do not know the answer to these questions, you need to find out. No two companies are exactly the same, and therefore, the design and service of your qualified retirement plan is integral to its ultimate success. Your plan should reflect your organization's unique circumstances, needs and objectives. 

KeyAdvisors offers the following menu of services: 

  • Assist w/Plan Design 
  • Assist w/ Investment Policy Statement Preparation 
  • Monitor Investment Menu/Benchmarking on an Ongoing Basis  
  • Assist Plan Trustees Meet 404(c) Responsibilities 
  • Assist w/ Selection/Review of Qualified Default Investment Alternatives 
  • Assist w/ Selection/Review of Target Date Investment Models 
  • Assist Plan Trustees Coordinate/Oversee Investment Committee  
  • Conduct Participant Enrollment Meetings  
  • Provide Financial Education Workshops for Participants. 

While many financial planners, brokers and insurance agents can sell qualified retirement plans, most do not assist you in meeting your fiduciary responsibilities. As the retirement plan industry is rapidly moving to a more fee transparent and regulated standard, we can help reduce conflict of interest, since, as independent advisors, we do not have any investment banking relationships or sell proprietary products. 

Many times, payroll companies, banks, PEO's and insurance companies provide their own qualified retirement plans and cannot really provide an objective RFP-as they are motivated to keep their own vendor in place. If you have not reviewed your company retirement plan within the last 12 months we would encourage you to do so. The Department of Labor has a fee disclosure form you can download here that helps plan sponsors to compare plans. 

Offering a retirement plan can be one of the most challenging, yet rewarding, decisions an employer can make. Both the employer and employees participating in the plan benefit when a retirement plan is in place. Administering a plan and managing its assets, though, require certain actions and involve specific responsibilities. It's why every one of our retirement plan clients receives our popular monthly memorandum we call "e-ffective plan tips". These e-mails are brief but include deadline reminders and plan tips needed to successfully maintain a plan. 

Contact us today or call us at (610) 891-9700 to learn more on how we may help you or to set up a complementary consultation.