When choosing a retirement plan provider, experience is important to consider. An experienced provider will understand employees' needs, adapt to changing tax laws, and handle market fluctuations well. It is best to select a provider that has experience with various plan types and company sizes. References can provide insight into a provider's professionalism and services. Fees should be fully understood, and a service agreement should outline the provider's responsibilities. Conducting thorough due diligence in selecting an experienced, accessible retirement plan provider will ensure your company's needs are met.
I have pleasure in presenting the Chartwell Financial Synergy - Client Newsletter - for Autumn 2012, covering a range of topical subjects which may affect you, your business or your clients.
• The Retail Distribution Review (RDR) - In January 2013, RDR will change how advisers work with their clients
• Company tax planning - Tax changes can affect your plans from year-to-year
• When will you stop working? - The number of people working past their state pension age is on the increase
• Spiralling tuition fees call for careful planning - The spiralling costs of tuition at English universities will be causing concern for many parents
• Falling annuity rates ahead - The link between gender & equality, and the reason why men looking to buy a pension annuity in the near future may wish to do that sooner rather than later
This issue also covers the national minimum wage increase, child benefit changes, and the importance of taking your dividends into account.
We provide expert advice on all of the topics discussed in the newsletter and more. We would be happy to help you with all aspects financial planning and security. Don’t hesitate to contact us if you require further advice or support.
Regards
Richard
Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
I have pleasure in presenting the Chartwell Financial Synergy - Client Newsletter - for Autumn 2012, covering a range of topical subjects which may affect you, your business or your clients.
• The Retail Distribution Review (RDR) - In January 2013, RDR will change how advisers work with their clients
• Company tax planning - Tax changes can affect your plans from year-to-year
• When will you stop working? - The number of people working past their state pension age is on the increase
• Spiralling tuition fees call for careful planning - The spiralling costs of tuition at English universities will be causing concern for many parents
• Falling annuity rates ahead - The link between gender & equality, and the reason why men looking to buy a pension annuity in the near future may wish to do that sooner rather than later
This issue also covers the national minimum wage increase, child benefit changes, and the importance of taking your dividends into account.
We provide expert advice on all of the topics discussed in the newsletter and more. We would be happy to help you with all aspects financial planning and security. Don’t hesitate to contact us if you require further advice or support.
Regards
Richard
Under ERISA Section 408(b)(2), retirement plan fees must be reasonable in light of the services being rendered. Retirement plan fees are also a hot target in the courts, most notably with last year's Tussey vs. ABB, Inc. decision. In this presentation, we discuss just what the reasonableness standard means for today's retirement plan sponsors, and an action plan for employers.
IRS Regulation 408(b) is expected to take affect in early 2012. Retirement educator Eric Roberts will present the 10 questions you should be asking your defined contribution plan vendor that will help you understand the actual fees and costs associated with your current benefit. Knowing what to ask is half the battle. All attendees of the program will receive Nyhart’s 408(b)2 Guide that includes a checklist of fees to look for and disclosure statements you should be get from your vendor to affirm the actual costs of your plan in preparation of the new regulations taking effect.
Tips to Simplify Contracting Process By SN PanigrahiSN Panigrahi, PMP
Tips to Simplify Contracting Process By SN Panigrahi,
Categorise the Contracts,
Standardize Formats Based on Categorization,
Standardize Clauses,
Standardize Specifications / Item Codifications,
Creation of Clause & Template Libraries,
Delegate Authority with Controls,
Committee Based Contract Finalization,
Team Collaboration
Prudent Partners is creating a niche for itself in the financial planning field, Within 6 months of its launch; today it is serving 25+ clients across different strata of society.
Jennifer serves as our client service manager, assistant compliance officer and is also involved in performing annual CEFEX assessments. Jennifer came to Canon Capital with six years of banking experience, most recently as a Branch Manager. Jennifer is a graduate of Gwynedd Mercy College with a Bachelor of Science degree in Business Administration.
IRS Regulation 408(b) is expected to take affect in early 2012. Retirement educator Eric Roberts will present the 10 questions you should be asking your defined contribution plan vendor that will help you understand the actual fees and costs associated with your current benefit. Knowing what to ask is half the battle. All attendees of the program will receive Nyhart’s 408(b)2 Guide that includes a checklist of fees to look for and disclosure statements you should be get from your vendor to affirm the actual costs of your plan in preparation of the new regulations taking effect.
Tips to Simplify Contracting Process By SN PanigrahiSN Panigrahi, PMP
Tips to Simplify Contracting Process By SN Panigrahi,
Categorise the Contracts,
Standardize Formats Based on Categorization,
Standardize Clauses,
Standardize Specifications / Item Codifications,
Creation of Clause & Template Libraries,
Delegate Authority with Controls,
Committee Based Contract Finalization,
Team Collaboration
Prudent Partners is creating a niche for itself in the financial planning field, Within 6 months of its launch; today it is serving 25+ clients across different strata of society.
Jennifer serves as our client service manager, assistant compliance officer and is also involved in performing annual CEFEX assessments. Jennifer came to Canon Capital with six years of banking experience, most recently as a Branch Manager. Jennifer is a graduate of Gwynedd Mercy College with a Bachelor of Science degree in Business Administration.
The TPA works with the plan sponsor to ensure the ongoing accuracy of the plan, minimize the time the plan sponsor has to spend on plan oversight, meet service and compliance deadlines, and coordinate with all parties.
With over 40 years of experience, Bryson Wealth Management is highly qualified to serve you or your business in all of your retirement plans and individual financial needs. Browse through our Capabilities Slides to learn more.
Whitepaper: Meeting Your ERISA Fiduciary ResponsibilitiesCBIZ, Inc.
This whitepaper discusses who is considered a "Fiduciary", what the significance of being a Fiduciary is and Fiduciary responsibility recommendations.
For more information, visit www.cbiz.com
401(k) Advisors service model starts with a Fiduciary Fitness program, Including a Fiduciary Investment and plan review and providor benchmarking analysis. Our RFP and provider search process is second to none where we gather over 300 data points on each provider and provide a detailed breakdown of Fees, Fund performance, and service. Our propriatery investment scorecard system takes in to account, Investment style, risk, peer group ranking, and qualitative analysis to help plan sponsors provide the necessary investment due dilligence to satisfy their fiduciary compliance obligations.
Washington Financial Group provides the services, experience and resources you seek to deliver an efficient and effective retirement plan to your employees.
How does the cost of your 40(k) plan compare to similar sized plans? As a retirement plan fiduciary, it is your responsibility to know the cost of your plan, and whether those costs are reasonable. Learn more about the fee benchmarking process.
Similar to How To Choose A Retirement Plan Provider (20)
1. How to Choose a Retirement Plan Provider
EXPERIENCE:
A vendor’s expertise should be a top concern. Experience that stands the test of time provides insight
regarding their ability to provide service. Retirement Plan Providers (RPP) should work with you to
ensure your plan remains compliant with changing tax laws and assists you when document changes are
desired or, more importantly, required by the IRS. It is in your best interest to select a RPP that can
design a plan based on your current needs, but also adapt to your needs as you grow. The greater the
experience, the greater the chance the RPP will;
o Understand your employees’ needs
o Adapt to constantly changing tax laws
o Cope with fluctuating markets
It is important to determine if the RPP has experience and specializes in a specific market or market
niche. You could ask the RPP the following:
How long has the retirement plan provider (RPP) been in business?
What type of plans does the RPP service?
o Profit Sharing
o 401(k) Deferrals
o Cash Balance Defined Benefit
o Defined Benefit
What is the average plan size?
o Number of participants?
o Plan asset value?
Do you offer alternative retirement options?
o IRAs
o Self Employed Pensions (SEP)
o SIMPLE 401(k)
Do you have experience with companies similar to my own?
REFERENCES
Most Retirement Plan Providers will provide a list of references. This is a great opportunity to gather
critical information about the RPPs professional temperament. Contact references and ask questions to
gage the RPP’s reputation. Questions you might want to ask:
Does the RPP service provide for your employees in the manner you intended?
Are you happy with the level of professional services?
Do you have online access to account information?
o If so, is it easy to understand and utilize?
Did you understand the fees associated to services?
Is the RPP available for consultation and will work with you proactively?
Page 1
2. How to Choose a Retirement Plan Provider
FEES
It is your fiduciary duty as a retirement plan sponsor to understand the fees associated to your company’s
retirement plan. When meeting with a potential RPP be certain to ask for a comprehensive fee schedule.
Total costs associated to a retirement plan can be very difficult to fully understand. It is your
responsibility as plan sponsor to ensure only reasonable and necessary fees are charged to the plan or paid
directly by the employer. It may be helpful to have the RPP walk you through this process and
demonstrate a typical plan year; showing you how fees are calculated and the frequency of invoicing as
services are rendered.
SERVICES
Obtain a written service agreement that lists services associated to your retirement plan. Review these
services with the RPP to ensure your company’s needs are met and additional services are available if
necessary. The RPP that is accessible for consultation is always preferred. A professional RPP will
always work with other professional service providers to ensure your retirement plan operates as needed.
Having your own human resource personnel meet and discuss processes with the RPP will help determine
if the RPP is an appropriate fit for your company. I always suggest outlining a “Schedule of Works” to
ensure your retirement plan is fully serviced and no service gaps exist. A sample of a “Schedule of
Works” might appear similar to the chart below.
CHART 1 – SAMPLE OF SCHEDULE OF WORKS:
PLAN RETIREMENT PLAN LEGAL INVESTMENT PAYROLL
SERVICES PROVIDER ADVISOR ADVISOR PROVIDER
Provide document Provide legal
services; or consultation
Plan Work with legal Draft an
Document adviser’s individual individual
designed document designed plan
document
Deposit contributions Process & submit
into participant employee elected
Contribution
accounts deferral
Deposit contributions
Allocate contributions Aid plan sponsor
and loan payments into to select plan
plan/participant elected investments
Investment investments Provide employee
Election enrollment and
investment
education
Deposit loan payments Process & submit
into participant account employee loan
Loan
adjusting for principle payments
Payments & interest payments
Page 2
3. How to Choose a Retirement Plan Provider
CONCLUSION
Once you complete a reasonable level of due diligence and have chosen a new Retirement Plan Provider,
it is important to document the selection process. This final step will safeguard you as a plan sponsor if
the plan is ever audited by the Internal Revenue Service or Department of Labor. A reasonable and
comprehensive selection process also provides peace of mind. Your new Retirement Plan Provider will
fit with your company and allow you to confidently sponsor a retirement plan.
If you have any questions or are looking to network with a retirement plan provider, please feel free to
contact me directly. I hope you found the article helpful.
John P. Stebbins, QKA, QPA
Goodman & Company
Supervisor
jstebbins@goodmanco.com
Page 3