I-ES Retirement Plan Sponsors - PC1342-Print

annually? Are investment committee meeting minutes documented? Can you demonstrate a clear linkage between the investment policy and any actions taken or not taken with respect to the plan’s investments? UNDERSTANDS FEES, INCLUDING THOSE THAT ARE NOT SO OBVIOUS New, more stringent retirement plan fee disclosure rules make attention to this detail mandatory. Understanding what you are paying can be difficult to determine. Look for an advisor who will regularly benchmark your plan costs to ensure they are competitive and reasonable as well as point out fees that are not so obvious. IS AN ENGAGED AND EFFECTIVE COMMUNICATOR Some plan advisors may talk at you or over your head, rather than communicating in plain English. The people who serve on investment committees are not necessarily professionals with an expertise in investments. The advisors you rely on must be able to communicate complex financial matters in understandable terms to help you make informed decisions about the plan. ACTS IN AN UNBIASED AND OBJECTIVE MANNER WHEN IT COMES TO OFFERING ADVICE One of the best ways to assess if your advisor is placing the interest of the plan ahead of his or her own self interest is to review the advisor’s compensation. Does the advisor adhere only to a suitability standard or is the advisor a fiduciary to the plan? If you’re not sure what capacity your advisor is acting in, just ask, “Where does your compensation come from?” and “Are you acting as an ERISA fiduciary to my plan?” If he or she Many employees lack confidence about their prospects for a comfortable retirement. Participant education, if done correctly, provides an opportunity to help employees better understand the benefits of a retirement savings plan and how it factors into their retirement. Whether done directly or in conjunction with other business partners, your advisor should be able to support your employee education efforts. SUMMARY The Plan Sponsor’s choice of a retirement plan advisor is one of the most important plan-related decisions that can be made. A thorough, periodic review can yield better protection for the company and the committee members, better service from the vendor and better support to help get the participants ready for retirement. can’t answer those questions, maybe it’s time to find a new advisor. CAN SUPPORT YOUR EFFORTS IN PREPARING EMPLOYEES FOR RETIREMENT

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