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%).
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!