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401k Plan Retirement Committee Keeps Retirement Plan on Track

401k Plan Retirement Committee Keeps Retirement Plan on Track.

401k Plan Retirement Committee actions make for a stronger 401k plan. Fred Barstein, Founder and CEO of The Plan Sponsor University (TPSU) interviewed Drew, Director of Financial Services, Retirement Plan Manager and Trustee at the conclusion of a TPSU Program held at University of Memphis, in Memphis, Tennessee.  Drew’s company has approximately 60 employees.  The organization’s 401k Plan Retirement Committee includes senior managers who take their fiduciary responsibilities seriously. The 401k Plan Retirement Committee holds regularly scheduled meetings which include the plan’s TPA and the financial advisor– where they review Investments, the Watch-list and Plan revisions.

Full Transcript Here

Thinking is Fred Barstein with 401K T.V. at the University of Memphis. Just completed a TPSU program and we’re here with Drew. Welcome Drew.

Thank you.

Okay if we ask you a few questions?


So why don’t you tell our audience a little bit about yourself and your organization.

Sure. So my name is Drew. I work company. It’s about 60 employees. I’m the director of finance services as well as default human resources, 401K plan trustee manager. All of the above.

Swiss army knife.

That’s right.

So one of the things you talked about is how every year or periodically senior management meets with the advisor and the TPA.


What do you guys talk about?

So when we get together we have our, like you said, senior management, TPA, plan advisor, plan sponsor representative. So we get together and basically, we review our plan. We review the investments in the plan. We review the changes that we foresee may need to be made in the plan. We discuss the performance of the investments. We have a scorecard that we go over of the investments. Investments are placed on a watch list based on previous performance. From there we discuss whether there are changes that need to be made in investment options. This past year we actually made three investments we moved out of the plan. Added four based on our collaborative conversation there. It feels like it … getting hat senior management there really helps to get them involved.

Are they all on the committee then?

Yes, yes. So we have our CEO, one of our VP’s. The ones that really make the decisions in the organization.

Right, right. And so as a result of that do you feel like you have a better plan ’cause you got a senior management-

Yes, yes. Anytime you get senior management involved, get them hands on it makes you feel like you take more ownership. Makes the employees feel like … that we’re doing our due diligence as fiduciaries. Watching out for them and the plan. So it’s really helpful having senior management involved.

Great. And then final question. A couple of things that you learned and picked up today.

Yeah so going back, one is definitely wanna review the plan documents. Make sure we’re doing everything that we say that we’re going to be doing. One is auto-enrolment. I think that would be a good something for us to look at. As well as auto escalate. We have employees that have made their decision to defer and it’s just been the same for years and years and I think if we introduce that auto-escalate I don’t think we would have much push back and it benefits us and our employees at the same time.

[inaudible 00:03:10] would win. Yip.

That’s right.

Great. Well, thanks for your time today.

Thank you.

And thank you for watching 401K T.V.


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