Taking a Stand for Participants
Always beats taking the witness stand
Plan sponsors really need to step back from time to time and ask themselves some serious questions. Matthew Eickman, the director of ERISA services for Prime Capital Investment Advisors and leader of the firm’s Omaha office recently laid out those questions in his presentation “A Fiduciary Choice for Your Clients: Taking the Witness Stand or Taking a Stand for Their Participants” at the annual Fi360 national meeting in Nashville.
Matthew presented a five-step roadmap that calls on plan sponsors to ask themselves some tough questions, clearly understand their responsibilities and to communicate, benchmark, and design correctly as well as to modernize and optimize their plan. Matthew is an ERISA attorney and told the group they need to be sure to measure the results of their plan on a regular basis to make sure they are getting optimal returns.
Eickman told the crowd sponsors should have a “why” session where they ask themselves five questions:
- Why do we have our plan?
- What are we trying to accomplish?
- Why do employees participate, or not participate, in our plan?
- Why do we use our current matching or profit-sharing structure?
- What other services are available?
Matthew also reminded listeners of their fiduciary responsibilities as sponsors and gave them a seven-step process for best practices on regularly benchmarking their plan process.
“Sponsors should embrace this process with a positive attitude,” said Eickman. “They should see it as an opportunity for better pricing or better service, maybe even both.”
If you would like more information you can download the slides here.
Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a Registered Investment Adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Qualified Plan Advisors (“QPA”) and Prime Capital Wealth Management (“PCWM”).