Retirement Plan - Sponsors

Role of a Retirement Plan Advisor

Plan fiduciaries must act as prudent experts under ERISA, and are therefore held to a high standard of care with respect to plan-related decisions regarding investments, service providers, plan administration and general ERISA compliance issues.

Most prudent plan sponsors hire a plan advisor to help them adhere to ERISA’s rigorous standards and to meet their objective of offering a best practices retirement plan to their employees. ERISA rules are clear — every decision you make as a fiduciary must be in the best interests of plan participants and their beneficiaries, and certain relationships may result in prohibited transactions.

Attributes of a Good AdvisorWhy You Should Hire One
IndependenceAbility to help evaluate funds and providers objectively and without conflict of interest
Familiarity with ERISAAbility to keep the committee updated on litigation, legislation and regulations impacting plans and fiduciaries
Prudent ExpertERISA section 404(a) requires fiduciaries to act with the skill, knowledge and expertise of a prudent expert
Expertise with Plan DesignAbility to help plans maintain qualified status while continuing to meet the goals and objectives of our organization
Knowledge of the Provider MarketplaceAbility to ensure that our plan is being administered in the most efficient manner and for a reasonable price
Qualified Plan Investment ExpertiseAbility to evaluate, select and monitor fund performance
Documentation SkillsAbility to demonstrate procedural prudence in a well-documented manner
Communication SkillsAbility to educate employees regarding plan highlights and how to create an appropriate investment strategy
Acceptance of Role as a Co-FiduciaryWillingness to acknowledge in writing that they’re a co-fiduciary to our plan with respect to the investment advice being delivered
Full and Open DisclosureFully and openly discloses all sources of fees being received on a direct and/or indirect basis

 

About Retirement Plan Advisory Group

Retirement Plan Advisory Group (RPAG) is an alliance of accomplished retirement focused advisors representing over 400 member firms, serving 28,000 plan sponsors with more than $200 billion in collective assets under influence. Learn more at rpag.com.

 

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