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With all of the fiduciary conversation going on lately, clients may have questions about their responsibilities. Here are three questions plan sponsors may be asking:
1. Am I fiduciary?
If you’re a plan sponsor, you’re a fiduciary. The Department of Labor (DOL) says fiduciary status is based on your responsibilities.
2. Can I hire someone to be the fiduciary for my plan?
With Congress debating the idea of creating a uniform fiduciary standard for investment advisors it raises the question, do small-business owners know what they need to about the fiduciary topic?
Here’s what the United States Department of Labor has to say to small-business owners about who is a fiduciary:
As you may have read in the 401kWire recently, Stan Harrell (Senior Vice President, CFO & CIO, U.S.
Do you know that one-third of all private-sector employees, about 42 million, work for small businesses with fewer than 100 employees? Upwards of 70 percent of those employees lack access to a work-based plan to save for retirement.
That troubling statistic was released this summer by the United States Government Accountability Office (GAO). Why the lack of access to retirement plans for many employees? The government found a lot of small business owners are overwhelmed by the responsibilities they believe come with 401(k) plans.
At one time or another, every advisor has had to reassure a plan sponsor that the recordkeeping around their 401(k) plan is safe and mistake-free. A recent article at PLANSPONSOR.COM by Kevin McGuinness quotes a report conducted by the Aite Group on what retirement plan sponsors should consider about the data management of their asset manager, recordkeepers and other plan-related service providers:
Did you see the recent survey from Charles Schwab that said American workers accept responsibility for financing their own retirement and are relying primarily on their 401(k) to get them there?
What are plan sponsors looking for in a Financial Advisor? A study by Warren Cormier of the Boston Research Group says the number one driver of overall satisfaction for Plan Sponsors is the advisor’s “ability to demonstrate that the value they deliver is well worth the fees and other costs.” The study says there are several specific customer experience elements that create value: