The Art and Science of Fee Benchmarking

Fee benchmarking is the process of comparing your 401(k) plan costs with the industry average rates. Comparing your 401(k) plan fees to other plans within a similar range is one step that you can take as a fiduciary to ensure that costs associated with the plan are fair and reasonable for the services provided.

2021-02-24T10:34:01-05:00February 24th, 2021|Categories: 401k Resources|Tags: , , , , |Comments Off on The Art and Science of Fee Benchmarking

MEPs/PEPs: Are Companies Overpaying for Economies of Scale?

The retirement industry is gearing up for the implementation and adoption of PEPs (pooled employer plans) which were first introduced in 2020 under the SECURE Act. PEPs are similar to MEPs (multiple employer plans) in concept and structure, but will allow unrelated employers to participate in a sing [...]

2020-09-08T12:41:21-05:00September 7th, 2020|Categories: 401k Resources|Tags: , , , , , |Comments Off on MEPs/PEPs: Are Companies Overpaying for Economies of Scale?

A Simple Guide to 401(k) Participant Disclosures

When it comes to 401(k) plans, plan sponsors have a fiduciary responsibility to distribute a variety of documents and disclosure notices. Imposing this responsibility on plan sponsors helps ensure that participants have the necessary information about the plan provisions and investment options in order to make informed and timely decisions for their personal financial wellness.

Just How “Open” is that Open Architecture Recordkeeping Platform You’re Considering?

The concept of an “open architecture” recordkeeping platform has been trending in the financial industry lately and it’s not hard to see why. For many years, 401(k) providers offered bundled platforms with fixed investment options (consisting of proprietary investments) and provider fees paid through investments (via revenue sharing). Open architecture platforms offer features that increase investment flexibility and reduce conflict of interest. 

2019-07-19T10:13:58-05:00July 19th, 2019|Categories: 401k Resources|Tags: , , , , , |Comments Off on Just How “Open” is that Open Architecture Recordkeeping Platform You’re Considering?

Does My Safe Harbor Plan “Require” Testing?

There is a common misconception that safe harbor plans are exempt from testing requirements. This overly general and inaccurate statement calls for a proper explanation. A safe harbor plan requires tests other than non-discrimination, entails proper administration to satisfy the plan design and can benefit from testing for plan optimization.

2019-07-19T10:16:12-05:00March 18th, 2019|Categories: 401k Resources|Tags: , , , , , |Comments Off on Does My Safe Harbor Plan “Require” Testing?

The Benefits of a Non-Producing TPA

As a financial advisor, you will need to decide which TPA (third-party administrator) to partner with, when managing your client's 401(k) plan. As you are determining which provider to use, it is important to understand the distinct roles within the plan and how your partnership decisions could impact your client’s experience.

2018-07-10T10:37:17-05:00July 10th, 2018|Categories: 401k Resources|Tags: , , , , |Comments Off on The Benefits of a Non-Producing TPA

Leveraging Retirement Goals & Business Objectives in a 401(k) Plan

Financial advisors and retirement plan consultants work together with business owners and plan sponsors to develop qualified retirement plans that address the specific objectives of the owners and key executives. The retirement plan consultant may conduct an annual projected contribution analysis for an existing plan to determine if the defined contribution plan design (401k and/or profit sharing type) allows for contributions that would benefit the owners/partners on a tax deductible favorable basis.

2017-10-11T10:41:27-05:00October 11th, 2017|Categories: 401k Resources|Comments Off on Leveraging Retirement Goals & Business Objectives in a 401(k) Plan

Pro-Rata Participant Fees and Fee Transparency: A Recordkeeper’s Conundrum

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.

2017-08-10T14:28:40-05:00August 8th, 2017|Categories: 401k Resources|Tags: , , , , , |Comments Off on Pro-Rata Participant Fees and Fee Transparency: A Recordkeeper’s Conundrum

 A New Era for Socially Responsible Investing and Fiduciary Obligations

Socially responsible investing (SRI) is a rapidly growing trend in markets around the world. This sustainable, responsible, impact investing model affords companies the opportunity to ensure that their investments align with their mission and values and also facilitate the global movement towards an environmentally sustainable and socially inclusive economy. SRI models involve ESG (environmental, social and governance) integration, investment screening, shareholder advocacy, sustainably themed investments and impact investing.

2017-06-06T16:31:33-05:00June 6th, 2017|Categories: 401k Resources|Tags: , , , , , , , |Comments Off on  A New Era for Socially Responsible Investing and Fiduciary Obligations
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