Role of a Retirement Plan Advisor

General | May 31, 2016

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 Advisor

Why You Should Hire One

Independence

Ability to help evaluate funds and providers objectively and without conflict of interest

Familiarity with ERISA

Ability to keep the committee updated on litigation, legislation and regulations impacting plans and fiduciaries

Prudent Expert

ERISA section 404(a) requires fiduciaries to act with the skill, knowledge and expertise of a prudent expert

Expertise with Plan Design

Ability to help plans maintain qualified status while continuing to meet the goals and objectives of our organization

Knowledge of the Provider Marketplace

Ability to ensure that our plan is being administered in the most efficient manner and for a reasonable price

Qualified Plan Investment Expertise

Ability to evaluate, select and monitor fund performance

Documentation Skills

Ability to demonstrate procedural prudence in a well-documented manner

Communication Skills

Ability to educate employees regarding plan highlights and how to create an appropriate investment strategy

Acceptance of Role as a Co-Fiduciary

Willingness to acknowledge in writing that they’re a co-fiduciary to our plan with respect to the investment advice being delivered

Full and Open Disclosure

Fully 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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