Advisors should check to see if a fiduciary services provider will review a sponsor’s existing investment lineup for inclusion on an approved list, particularly if the desire is to retain specific funds or even as many of the existing funds as possible. These types of reviews can help ensure sponsors include the best investments for the plan. They can also potentially reduce disruptions for plan participants by mitigating changes in investment options.
Another important function of a fiduciary service is reporting. Standard reports are better than nothing but may not be ideal. A custom report delivers the information most important to the sponsor. After all, smart decisions come from the most relevant information, so look for a provider that offers reporting specific to a sponsor’s plan.
Part of being a fiduciary is tracking information about the plan and its investments. The better fiduciary service providers now offer web portals to store information on fiduciary contacts, the sponsor’s investment policy statement and due diligence reports. Having all of the plan’s documents in one secure location is smart, convenient and safe.
Effectively managing fiduciary obligations can be overwhelming and a fair amount of proactive tracking is required to stay on top of them. Failure to meet fiduciary deadlines can even put a plan at risk of disqualification.
Some fiduciary services include resources such as educational publications and seminars, calendars of key dates with automated reminders, and other action-oriented tools. Having access to the right resources and tools to help meet fiduciary obligations can be conducive to a sponsor’s sleep and free up time to tackle other plan administration responsibilities.
Like a fine suit of clothes, a fiduciary service should be fitted to a retirement plan sponsor’s individual needs, tastes and goals. By helping tailor available services to sponsors’ needs, you can help them remain compliant in relative style and comfort.
E. Thomas Foster Jr. is assistant vice president of Strategic Relationships for Massachusetts Mutual Life Insurance Company (MassMutual).