Plan expenses and your adviser

How do I know if my plan is too expensive?  First, you need to know just what your plan expenses are and what services they're paying for.  Expense disclosure is one of the most significant "hot buttons" of qualified plan management today.  Starting in 2012, the rules have changed such that clearer and fuller disclosure is required at the participant level.  Is your provider prepared?  Once you know your plan expenses, periodic comparisons of similarly sized plans are an appropriate strategy.

What role does my financial adviser play?  This is another of the most crucial issues of the day.  Legislation is changing.  Your adviser's role with your plan may be that of a fiduciary, or the advisor may shun that role.  If the latter, are your employees missing services that may be helpful in their quest for a comfortable retirement?  Does the role of your adviser, if a fiduciary, conflict with the services offered to your employees?  These will be important issues as this regulatory environment evolves.

How do I minimize my firm's role in the day-to-day operations of our plan?  Services for your plan can be purchased - often through your contract administrator or payroll service, but somewhat less commonly through your financial adviser.  Such tasks as distribution and loan processing can certainly be handled by the professional who is qualified and willing to do so, thus making your life easier.