September 2017 Newsletter Fiduciary - The New "F" Word [...]
Times can get tough for people. With the onset of Hurri [...]
What does it mean when fees are assessed "pro-rata"? The pro-rata method of assessing a fee is when the total fee amount is deducted proportionally from participant accounts. In terms of fee fairness, pro-rata fees will ensure that all participant fees are reasonable based on their account balance. In terms of fee clarity, a participant will never be able to verify or calculate their pro-rata fee, since they are only aware of their individual account balance and not the balances of other participants.
CEFEX, Centre for Fiduciary Excellence, LLC, has certified RPG Consultants of Valley Stream, NY as adhering to the American Society of Pension Professionals & Actuaries (ASPPA) Standard of Practice for Retirement Plan Service Providers. RPG Consultants (RPG) was among the first firms in the United States to successfully complete the independent certification process for recordkeepers, and has now earned the certification for the 6th consecutive year.
RPG Consultants was invited to participate in the PLANSPONSOR magazine 2017 DC Recordkeeping survey along with Fidelity, Empower, Vanguard and other top recordkeepers in the industry. We are proud to say that in over 30 years of service and company growth, we continue to maintain the small-business mentality and personal client relationships as we rank with multi-billion dollar corporations. We are recognized in our industry for our unparalleled service, personalized solutions, client retention and success.
For many years, plan sponsors have wrestled with the decision to offer loans to their plan participants. Some consider them to be a benefit and even promote them as a legal way to use tax free money while participating in the plan. According to the Employee Benefit Research Institute, 87% of plan participants can take a loan against their retirement account. Of those employees with access to take a loan, about one-fifth borrow against the retirement account. Come retirement, what are the effects of loans taken from pension funds on an employee's account?
The latest news regarding retirement plans has centered around service provider fees. While fees are a highly important aspect of managing an employer-sponsored retirement plan, they are not the only metric of your overall retirement plan's health. A low-cost retirement plan does not necessarily parallel a fruitful pension program for employees. Studies show that since Social Security was never designed to fully fund an individual's retirement, employer-sponsored retirement plans have become an integral part of employees' overall financial plan for their future. Relying so heavily on this one component should prompt any plan sponsor to ask one very straightforward question… How healthy is my company's retirement program?
RPG Consultants is proud to be a CEFEX-Certified Recordkeeper and Third Party Administrator (TPA). We are one of less than 13 firms in the country to hold the certification for both TPA and Recordkeeping services. The CEFEX accreditation certifies that we conform generally to the Standard of Practice for Retirement Plan Service Providers, as defined by the American Society for Pension Professionals & Actuaries (ASPPA) and CEFEX (referred to as the Standard).
With communication mediums like email, text, and IM's becoming the standard in business industries worldwide, plan sponsors are becoming increasingly interested in abandoning paper processes for a more electronic means of communication with plan participants and beneficiaries. Since e-delivery is not an "all or nothing" prospect, this new approach presents itself as an accessible and easily implemented process with many advantages.
Excuse me, can you tell me what kind of car is best for me? It is impossible to answer that question without getting more information…how will the car be used? What is the budget? For fuel efficiency and driving in a crowded downtown area, maybe a Smart Car is best. Hauling heavy loads of construction materials? Perhaps a truck makes sense. Have kids that need to be shuttled from one activity to another? Maybe the less-stylish but ever-so-practical minivan is the perfect solution.