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401k Plan Fiduciaries – What Do They Want?

401k Plan Fiduciaries – What do They Want?

What do 401k plan fiduciaries want?  401k retirement fiduciaries hope to build and oversee a good plan.  Retirement plan fiduciaries want a good plan for their employees. A good 401k plan does not happen by accident.  At the conclusion of a TPSU fiduciary education session held at Butler University, in Indianapolis, Indiana, The Plan Sponsor University (TPSU) Founder and CEO, Fred Barstein, spoke with Chris Thixton, Adjunct Lecturer of TPSU.  They discussed the interests of retirement plan fiduciaries.  Keeping it simple, Mr. Thixton stresses three topics which every good retirement plan fiduciary should be keeping in mind.

Full Transcript Here

Fred Barstein:
Fred Barstein with 401k TV at Butler University where we just completed a TPSU program and I’m here with our esteemed adjunct lecturer Chris Thixton. Chris is a Principle at Pension Consultants. They’re one of the largest advisory firms in the country over 4 billion dollars of assets under management and growing.

Fred Barstein:
Based here in the Midwest area, so welcome Chris.

Chris Thixton:
Thank you.

Fred Barstein:
Thanks for your first TPSU program.

Chris Thixton:
Absolutely.

Fred Barstein:
So one of the things you talked about which I thought was well received was what makes a good plan? What are the simple ingredients and elements of a good plan?

Chris Thixton:
Well we really start with this. A fiduciary wants a good plan, and they want confidence that they have a good plan, and how would they know if they have a good plan?

Chris Thixton:
We think there are three key essential elements that any fiduciary needs, wants, for a good plan.

Chris Thixton:
It’s one, that the plan’s investment lineup performs well.

Chris Thixton:
Two, that the fees paid by the plan are low.

Chris Thixton:
Then thirdly, that employees are on pace for retirement.

Fred Barstein:
When you say low, is it, low or reasonable?

Chris Thixton:
Well, obviously from a fiduciary standpoint, Title 1, fees need to be reasonable, but for a good plan, I mean not only do we want them to be reasonable, but we want them to be low, because ultimately this is what’s coming out of participant’s accounts.

Chris Thixton:
So we want fees to be low because that compounds over their working career.

Fred Barstein:
So fees, investments, and outcomes.

Chris Thixton:
Are they on pace for retirement? If you’ve got good investments and you’ve got good fees you still need to be contributing to the plan to be on pace for retirement.

Fred Barstein:
And you didn’t mention the other “F” fees, funds, and fiduciary, but if you do those things you’re pretty well protected.

Chris Thixton:
Well, and ultimately at the end of the day, don’t fiduciaries want a good plan?

Fred Barstein:
That’s right. Well that’s great. Thanks for your time today. Thanks for participating in TPSU. Hopefully it was worthwhile for you?

Chris Thixton:
It was. Thanks for having us.

Fred Barstein:
And thank you for watching 401k TV.

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