The focus of a retirement plan consultant should be helping you carry out your duties under the Employee Retirement Income Security Act (ERISA). The law judges you not on the investments you pick but on the process by which investments are selected and fiduciary standards are put into practice. You should be comfortable that person knows more than you regarding protecting the retirement best interests of your plan’s participants. All of that should have the express purpose of helping you and your employees retire confidently.
Hiring the right Retirement plan consultant for your company’s retirement plan should be your first step. Think of it as hiring an architect to capture your vision for your new house. Based on your vision and the constraints of physics and local codes they draw your vision. They can then help you hire and monitor the general contractor and other subcontractors. While not imperative, you should look to hire a Retirement plan consultant that accepts the liability of being an investment advisor as defined in Section 3 (21) of the Employee Retirement Income Security Act.
Finding a pre-screened retirement plan consultant
Through the innovative Retirement Plan Consulting Program, the first of its kind, plan advisors who work with LPL Financial can act as co-fiduciary to your plan for investment selection, relieving your plan committee of many of these mounting pressures. The Retirement Plan Consulting Program (RPCP) is a fee-based consulting platform that allows qualified advisors to provide advice to plan sponsors using the LPL Financial corporate Registered Investment Advisor. Most importantly, it demonstrates that the advisor is serving as a 3(21) ERISA fiduciary for investment selection,4 acting solely in the best interests of the plan and its participants. These advisors are not compensated for the sale of a product—all of their compensation is agreed upon and paid directly by the plan sponsor client and/or out of plan assets. And finally, because the RPCP advisor is disclosing services, fees, and fiduciary status, it all meets current 408(b)(2) regulatory requirements.
Three key benefits of a retirement plan consultant to you and your firm
- Empowered by unbiased, truly independent fiduciary advice, your retirement plan committee will receive:
- Keen insights and best practices to help navigate a maze of complicated regulatory issues and disclosure requirements
- Purpose-built tools, to provide recommendations and monitoring of investments and investment performance that take into full consideration the methodology and documentation that ERISA requires
- Access to comprehensive financial education and enrollment programs designed to improve retirement readiness for your employees
A complete array of ERISA 3 (21) fiduciary services
Advisors approved in LPL Financial’s Retirement Plan Consulting Program, your Envision 401k Advisor can provide value through an array of services including:
- Investment Policy Statement (IPS) creation and monitoring
- Ongoing investment monitoring
- Assistance with changes in investment options
- Ongoing investment recommendations
- Performance reports
- Qualified Default Investment Alternative (QDIA) assistance
- 404(c) assistance
- Participant enrollment
- Participation education
- Plan search support/vendor analysis
- Benchmarking services
Need a Retirement Plan or Retirement plan consultant evaluation?
Are you satisfied with how you are carrying out your fiduciary responsibilities, improving retirement readiness for your employees and enhancing the overall effectiveness of your retirement plan? If not, let us help educate you on your options and how you might benefit from the LPL Financial Retirement Plan Consulting Program.
(1) The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. (2) Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. (3) The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AZ, IN, IL, MI. (4) ERISA section 3(21)(A) provides that a person is a fiduciary with respect to an employee benefit plan to the extent that such a person among other things, exercises any discretionary authority or control over the management of the plan or disposition of plan assets; renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan; or has any discretionary authority or discretionary responsibility in the administration of such plan.
