Clear Communication is Key Between RPAs & Plan Sponsors
Clear communication is key within any relationship, but it’s particularly critical between a Retirement Plan Advisor and a Plan Sponsor. Ensuring that both parties are on the same page and have a shared understanding is paramount for the success of the retirement plan and the financial well-being of plan participants.
Retirement Plan Advisors play a vital role in guiding Plan Sponsors through the complexities of retirement planning, investment options, and fiduciary responsibilities. They provide expert insights and recommendations tailored to the specific needs and goals of the plan and its participants. However, without clear and effective communication, misinterpretations can arise, leading to potential misunderstandings and missed opportunities.
At the conclusion of The Plan Sponsor University (TPSU) Fiduciary Education Program held at DeSales University, Fred Barstein spoke with
Kristi, the HR manager at a temperature control company in Allentown, Pennsylvania, who recently changed advisors for their 401(k) program. They discussed the importance of clear communication in retirement planning and how it was lacking with their previous advisor. Kristi expresses her appreciation for their new advisor, Brendan Spears with Legacy, who communicates in plain English, making it easier for her and her employees to understand the retirement plan details.
Kristi shares that they changed advisors about three months ago and selected Brendan’s group because they align with their organization’s values and provide employee education and hands-on support, which were lacking before.
Read the Full Transcript Here:
Fred Barstein:
Greetings. This is Fred Barstein, CEO and founder of TPSU. We just completed a program at the South University in Pennsylvania and here with Kristi.
Kristi:
Hi, how are you?
Fred Barstein:
Okay if we ask you a few questions?
Kristi:
Absolutely.
Fred Barstein:
Before we do, tell our audience a little bit about yourself.
Kristi:
My name is Kristi. I am the HR manager at a temperature control company in Allentown, Pennsylvania. We have 36 employees.
Fred Barstein:
Very good. So Kristi, I know that you had recently changed advisors and have a great advisor who happens to be our TPSU lecturer, but one of the things you talked about was the importance of speaking in plain English. Why is that important and maybe before wasn’t happening?
Kristi:
I find it to be very important because before in our 401K program with our TPA and our advisor, it wasn’t happening. There were many times that I sat in a meeting and he spoke an alphabet and no one knew what it stood for, what it meant to our plan… Towards our plan or our employees. And that’s one thing that I really value about Brendan and his team, is that it’s in plain English. It’s easy to understand. It’s easy for my employees to understand as well.
Fred Barstein:
Right. And Brendan Spears with Legacy is your new advisor. So when did you change advisors?
Kristi:
We actually just changed quite recently, within the last three months. And we interviewed several groups and Brendan’s group really stood out. They’re a very kind group that hold to the same values that our organization does, and that was important for us. Some of the biggest things that they do are employee education, which was very lacking. They are very hands-on with our employees and my employees needed that.
Fred Barstein:
Right, so finding… And there’s a lot of good advisors out there, but it’s one that your organization is comfortable with. That’s a big part of it, so that’s great. Congratulations on that.
Kristi:
Thank you.
Fred Barstein:
Thank you for attending. And what are some of the key points and that you learned today and would you recommend this program?
Kristi:
First off, I would absolutely recommend the program. I thought it was very informational and educational. The key takeaways I took from it was to really consider auto-enrollment, auto-escalation, and also looking at your matches and are they current. And also, I think the biggest takeaway is understanding your employees and their demographics to know how to tailor your program to be the best for your participants.
Fred Barstein:
Great. Well, thank you. Thanks for… Thanks for coming. Thanks for Thank you.
