UPDATED REPORT! Report Offers Steps for Building an Optimal Retirement Plan Investment Menu

A retirement plan’s overarching goals are to help participants accumulate wealth during their years of employment and to provide them with income during their retirement.

The challenge for fiduciaries is to successfully navigate the options available and build an optimal investment menu that is designed to guide participant choices and improve their retirement readiness. Since plan fiduciaries may be exposed to personal liability, it is prudent to have a process in place for the selection and monitoring of investment options.

Strategic Benefit Services has outlined a four-step process for constructing an optimal investment menu that:

• fosters ERISA compliance;
• provides desirable investment choices for plan participants; and
• impacts retirement outcomes.

Complete the form below to download "4 Steps to Building an Optimal Retirement Plan Lineup for Participants". If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or by email.

Retirement Plan Best Practices for Using an Independent Advisor

Best practices underscore the value of using an independent advisor with regard to developing, implementing, and overseeing a retirement plan. An experienced, independent advisor can offer valuable guidance and feedback to help ensure that a retirement plan is meeting the objectives of both the plan sponsor and participants. As a plan fiduciary, if you are lack the expertise necessary to fulfill your fiduciary obligations,

Retirement Plan Administration Best Practices

Retirement plan sponsors have a difficult challenge: balancing the desire to offer a valued and valuable retirement plan to their employees, with the administrative and regulatory requirements and expense of maintaining the plan.

Experts agree that plan sponsors can help address these issues by consistent adoption of plan administration and oversight best practices.These steps can lower costs, increase plan enrollment, boost savings rates, and better prepare employees for a more secure retirement, while helping mitigate the risk borne by plan fiduciaries.

How Saratoga Hospital Reduced Their Retirement Plan Expenses

When it comes to reducing retirement plan expenses, there is no time to waste!

Saratoga Hospital wanted to quickly establish a solid fiduciary process. Read about Saratoga Hospital’s challenges with its retirement plan, and how Strategic Benefit Services was able to reduce its retirement plan expenses and ensure it is in compliance with ERISA regulations.

If you have any questions or would like to speak with an advisor about reviewing or establishing a plan, please contact us at (855) 882-9177 or via e-mail at sbs@hanys.org.

Automatic Features in Defined Contribution Plans

According to the 2014 Retirement Plan Survey conducted by Strategic Benefit Services, approximately one-half of the responding retirement plan sponsors offer automatic enrollment. Offered in conjunction with automatic escalation, such features can positively impact participant behavior and improve retirement readiness. This article examines some best practices to be considered when implementing automatic features in defined contribution plans that can produce greater results per dollar of employer cost.

Survey Reveals High Level of Uncertainty Among Plan Administrators

Strategic Benefit Services’ 2014 Retirement Plan Survey uncovers significant uncertainty among employers about retirement plan administration.

The survey—which sought to identify significant trends in retirement plan services—found: Nearly 80% of respondents said they were unsure if their plan advisor was acting in a fiduciary capacity; 17% percent of respondents were unsure how their advisors were compensated; and one quarter said they were unsure how

Roles and Responsibilities Refresher for the Prudent Plan Fiduciary

Fiduciaries of defined contribution retirement plans are under closer scrutiny than ever before. Plan participants are filing lawsuits, the media has increased its attention on fiduciary failures, and during plan audits the U.S. Department of Labor (DOL) now routinely asks for evidence of fiduciary training. In light of the potential personal liability, it is imperative that plan fiduciaries understand their responsibilities and adhere to the standards of conduct that apply to them.

New Report Offers Tips for Improving Retirement Plan Participant Outcomes

Defined contribution plans are and will continue to be a mainstay in the market. But, are they working?

Improving Participant Outcomes: An Action Plan for Plan Sponsors looks at some of the factors that plan sponsors should consider when assessing the value of the retirement plan offered to their employees. It also considers steps they can take to provide greater assurance that employees will be able to generate sufficient income on which to retire.

Retirement Plan Advisor - Reason #7

7. Conduct Ongoing Due Diligence on Service Providers and Investment Managers

The Plan Advisor stays well informed on meaningful developments across a broad spectrum of topics that have the potential to affect the service providers’ ability to deliver quality services (e.g., financial strength, change in ownership/management, and adverse litigation). Due diligence on investment managers entails:

Retirement Plan Advisor - Reason #6

6. Performance Reporting

A comprehensive investment performance report is essential for fiduciaries’ prudent investment decisions. The Plan Advisor generally produces performance reports and makes a presentation to the fiduciaries on a quarterly basis. Performance reports normally include information such as that listed in the table below.

Retirement Plan Advisor - Reason #5

5. Investment Manager Replacement

The Plan Advisor’s due diligence on investment managers may reveal a manager that no longer meets the selection criteria in the IPS. The Plan Advisor should notify the institution on a timely basis and the specific criteria under which the manager is deficient. Depending on the number of selection criteria deficiencies and severity of the problem, the Plan Advisor will recommend that the manager be placed “under review” or be immediately replaced.

Retirement Plan Advisor - Reason #4

4. Investment Manager Search and Selection

The Plan Advisor conducts a search for a best-in-class investment manager for each of the asset classes identified in the asset allocation policy section of the IPS. Applying the qualitative and quantitative selection criteria as a filter, the Plan Advisor produces a list of potential managers.

Retirement Plan Advisor - Reason #3

3. Managing a Request-for-Proposals for Service Providers

The Plan Advisor’s knowledge of the investment industry makes it the logical choice to manage a request for proposals (RFP) for other service providers, such as custodian or directed trustee. The Plan Advisor’s role in the RFP includes:

Retirement Plan Advisor - Reason #2

2. Establishing Investment Policies and Procedures

A well written investment policy statement (IPS) provides the framework for consistent investment decisions. Early in the relationship, the Plan Advisor will review the existing policies. In the absence of existing policies, the Plan Advisor will provide an IPS to the institution. Standard IPS language encompasses the topics shown in the table below:

7 Reasons for Hiring a Dedicated Retirement Plan Advisor

Fiduciaries of employer-sponsored retirement plans hire a Retirement Plan Advisor to meet their responsibilities under the Employee Retirement Income Security Act (ERISA) and to improve the probability that their employees’ retirement investment goals will be achieved. A Plan Advisor that is dedicated to retirement keeps abreast of changes in the industry and in the regulatory environment and interprets all relevant developments for its clients.