More Money, Less Taxing
We’re here to improve the efficiency and performance of your plan for participants so they can achieve improved retirement outcomes.
OPTIMIZING YOUR 401K
Optimizing your plan design is typically the first thing you should consider to better enable participants to save adequately for retirement while meeting company objectives. It is also one of the most direct avenues a plan sponsor can take to impact participants’ saving behavior.
The CIP Group provides initial assessments of company retirement plan goals and objectives, budget constraints and operational practices. We identify and recommend administrative features to optimize plan performance while reducing corporate fiduciary exposure, and facilitate employee participation through education. Our service helps sponsors:
Align employer contributions to the plan with company profitability
Maximize allowable contributions and benefits for owners and key executives
Keep fees reasonable and transparent to help account balances grow
Better incent employees to save for retirement
Recruit and retain top talent
Educate employees about retirement planning, investing, and other financial concepts
MAKING YOUR FUNDS MATTER
CIP can provide you with Plan Sponsor Investment Advisory services as Co-Fiduciary under ERISA 3(21) for fund selection & monitoring recommendations, and as Sole Fiduciary under ERISA 3(38) for our Risk Based Managed Portfolios.
Investment Analysis – ERISA 3(21)
CIP can help you navigate fiduciary responsibility and improve performance opportunities for participants through our systematic Investment Due Diligence Process. This process offers a prudent quantitative and qualitative investment analysis needed to select, monitor, and evaluate funds following a best practices process which includes:
INVESTMENT POLICY STATEMENT
We’ll help you produce a customized, ERISA-compliant investment policy statement that incorporates the fiduciary methodology of the Prudent Practices for Investment Fiduciaries.
INVESTMENT RESEARCH AND GUIDANCE
Our powerful investment due diligence capabilities enable us to conduct a comprehensive fiduciary-level review of your plan’s current lineup of mutual funds, ETFs, separate accounts, variable annuities, and insurance group separate accounts.
We’ll produce a wide range of customized reports and documentation that can verify your compliance with ERISA’s fiduciary requirements. Those reports include fee and expense summaries and performance analytics for both asset allocation models and individual investments.
Risk Based Managed Portfolios – ERISA 3(38)
This approach allows participants the opportunity to choose, or be defaulted to Risk-Based Professionally Managed Portfolios which provides them with a managed diversification strategy based on their risk tolerance and time horizon for retirement. These portfolios are managed under ERISA 3(38), discharging the plan sponsor from the liability of the ongoing management of these portfolios.
Benchmarking plan fees and complying with the amended ERISA §408(b)(2) fee disclosure regulations helps plan sponsors take advantage of the protections and statutory exemption offered by ERISA §408(b)(2). It also reduces the likelihood and impact of a DOL “targeting hit.”
“We’ll guide you through the administrative, communication, and fiduciary systems to help your retirement plan and employees achieve their true potential.”
—Robert McGowan, 401K Team Leader
REDUCING THE TIME AND STRESS OF COMPLIANCE
While the laws governing retirement plans and their fiduciaries’ responsibilities are complex, complying with them doesn’t have to be stressful. It simply requires an awareness of the rules, a process for complying, and the use of quality advisors and service providers to help meet your responsibilities.
All defined contribution plan sponsors have specific fiduciary responsibilities as defined by ERISA. Any person or committee serving in the role must ensure that:
He or she is always acting in the best interests of the plan and its participants
The plan is managed in accordance with the plan document
ERISA notification and reporting requirements are being met
The plan offers an appropriately diversified mix of investment options
Investment options are evaluated, selected, and monitored in a prudent manner
Plan and investment costs are reasonable
Participants and beneficiaries have adequate information to make informed decisions about the management and investment of their retirement savings
CIP will help guide you through the process of managing these responsibilities as well as define and measure desired participant outcomes. We are also pleased to serve as fiduciary or co-fiduciary in the ongoing investment selection & monitoring process and help participants make informed decisions about their plan.
DOL Fiduciary Rule
Education and Counseling
PROVIDING THE MISSING INGREDIENT
Many employers believe participants don’t save more because they can’t afford it. Studies reveal, however, the primary cause for low savings rates to be a combination of confusion and fear when facing the investment process. That confusion directly affects the number of participants who invest, how long they choose to invest, as well as what types of investments are chosen.
Employers can be more instrumental in improving participant retirement savings outcomes by:
Optimizing plan design features
Offering low cost professionally managed Risk-Based Portfolios
Adopting Safe Harbor plan features designed to improve enrollment and contribution levels
Providing ongoing access to licensed financial counselors.
At CIP, we shift the conversation from a seemingly unattainable total balance at retirement to better equating current contribution and diversification levels to desired income replacement ratios at retirement. Having access to a licensed financial counselor provides significant improvements in participation, proper deferral amounts, and appropriate investment allocations.
Our education approach helps participants understand:
Their risk tolerance and how to diversify appropriately in 401(k)
When they would have the option of retiring
How investment strategy is aligned with family risk tolerance and retirement goals
How much potential income they can generate from their accounts in retirement
The impact of employer contributions to the plan and how it affects future projected income in retirement
The importance of creating a will, power of attorney, healthcare proxy and homestead
How to select which voluntary insurance options best meet their needs
How to establish an accessible emergency fund