The role of an advisor for a defined contribution (DC) plan has never been more critical to help organizations manage their plan and fiduciary responsibilities as well as help participants achieve retirement security. That role is bound to dramatically change with the new DOL fiduciary rule. As a result, TPSU, TRAU and 401kTV in collaboration with NAPA, are asking DC plan sponsors to tell us what services are critical to them and rate the level of service they are receiving in a 5 minute anonymous survey. Advisors are encourage to send this invitation to their plan sponsor clients.
An executive summary of the results will be made available to help Plan Sponsors better manage their relationship with their plan advisor. The survey results will be revealed at a session at the NAPA 401k Summit March 19-21.
Issues covered in the survey include:
- How plan sponsors source advisors
- How often they benchmark their advisor or go to RFP (request for proposal)
- How advisors are paid
- Are they willing to act as an ERISA fiduciary
- Do they provide participants with additional financial planning
- What are the most critical services offered by an advisor
The survey results can act as a guide for plan sponsors to understand the role of their advisor, whether they are receiving the best services from their current one, and how to manage that relationship. Selecting and managing a plan advisor is hard for most DC plan fiduciaries with little training or education – this survey will help plan sponsors to understand the critical role an advisor can play and how to maximize the relationship based on the wisdom of the crowd.
Most advisors under the new DOL rule will be considered a fiduciary making their selection even more important. Not paying attention to best practices on selecting and monitoring a plan advisor can lead to fiduciary liability and even risk of lawsuit under the new DOL rule.
So please take 5 minutes to complete the survey to help you and other plan sponsors to improve their plan and retirement security of their employees through the selection of the best advisor professionals in the market that are right for you and your plan participants. The survey can be accessed here.
Learn more about the critical role of a DC plan advisor at “What to Expect from a Plan Advisor”
