Not-for-Profit Plans Seeking Help From Advisors

Not-for-Profit Plans Seeking Help From Advisors in a benefits blog
In a recent PLANSPONSOR article1, David Swallow, senior director of institutional relationships at TIAA in New York claims that 52% of small retirement plans (those with less than $50 million in assets) that currently do not have an advisor are either looking for one or considering doing so.
 
A recent survey2 conducted by TIAA found that sponsors with an adviser feel more confident about meeting their fiduciary responsibilities (85% versus 80% of plans without an adviser), that their plan’s fees are fair and competitive (79% versus 57%) and that their employees are saving adequately (40% versus 8%).
 
Lawsuits
 
As fiduciaries, Plan Sponsors are required to act in the best interests of their participants. Unfortunately, the recent influx of lawsuits in higher education proves this isn’t always the case. Whether their retirement plans were weighed down with high-cost mutual funds when better and less expensive funds were available, or fees charged were excessive in light of services rendered, it was found in multiple cases that the participants’ interests did not come first.
 
Importance of working with an RIA

Partnering with the right Registered Investment Advisor (RIA) who acts in a fiduciary capacity can help you mitigate future risk and improve the overall effectiveness of your plan. An RIA can help you:
 
  • Conduct a thorough assessment of the plan, its expenses and governance structure
  • Conduct formal reviews of administrative fees, investment menu, and plan design
  • Engage employees to help increase participation and contribution rates

Sentinel Benefits & Financial Group is positioned to guide you and your team down the right track! Please feel free to contact us with any questions!


 
1“Small Plans Seeking Help of Advisors” by Lee Barney, PLANSPONSOR, January 2, 2018, https://www.plansponsor.com/small-plans-seeking-help-advisers/
 
2The survey was conducted by KRC Research from January 18 to February 17, 2017, via a phone survey of 835 plan sponsors in the not-for-profit sector, including higher education institutions, private K-12 schools, not for profit hospitals, government agencies and other nonprofit institutions.

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