As an independent fiduciary consultant, CapSouth is uniquely positioned to provide objective guidance to retirement plan sponsors. Section 404(a)(1)(A) of the Employee Retirement Income Security Act of 1974 (ERISA) requires fiduciaries of retirement plans to make decisions in the best interest of participants and beneficiaries. This is further compounded by the fact that the standard to which plan sponsors are held is not that of a “prudent man” but a higher standard, the “prudent expert” rule. The Department of Labor (DOL) describes the standard as, “a prudent man…familiar with such matters.” In today’s litigious society, plan sponsors are becoming more uncomfortable being held to this standard by themselves.
CapSouth Retirement Plan Services
CapSouth offers a full range of services for corporate retirement plans. These services are designed to assist plan fiduciaries in both understanding and managing their fiduciary duties.
Our services include:
- Review of the current operations of the oversight group (Retirement Plan Committee, Trustees, Investment Committee, etc.)
- Recommendations for change in the structure and/or operations of the group
- Conducting training sessions for the fiduciaries
- Provide experienced oversight of the ongoing operations of the group
- Proactive work to schedule regular meetings
- Assistance with preparation of agendas and minutes
- Ongoing record retention
- Periodic plan provider reviews
- Periodic expense, fees and revenue review
- Review of plan expense disclosures
- Investment policy review and development
- Investment selection and ongoing monitoring
- Plan design consultation
- Participant advice programs
- Development of model allocations or model portfolios
- Investment management services for trustee-directed plans
Employee Education Services
Numerous studies have shown that the majority of corporate retirement plans are not meeting the basic goal of the plan: to provide for an adequate retirement for the employees. It has been our experience that plan participation is driven by two key factors: employee’s knowledge and comfort level. Many participants do not understand the amount of money that they will need at retirement, how much to contribute and how to invest or manage the account. As more plans add the Roth 401(k) feature, the participant now must decide if they will use the regular 401(k) pre-tax account or the Roth after-tax account.
The employee education and communication programs offered by CapSouth will assist the plan sponsor in identifying the problems with the plan communications and in developing programs to assist the plan sponsor and the participants in reaching their goals.
CapSouth education services include:
- Review of the goals and objectives of the education program
- Review of all current enrollment and educational material and assistance with modifications
- Enrollment programs (onsite, via web-ex, or video conferencing)
- Coordinate various vendors
- Educational seminars for covering many financial planning and investment related topics
- Targeted communications, surveys, etc
- Development and/or review of employee communication memos and announcements
- Tracking the progress of the program
Intermediary Services
CapSouth provides Intermediary Services that are designed to supplement or complement services being provided by brokers, financial institutions, platform providers, third party administrators, and record keepers. These services can assist in reducing the liabilities to plan fiduciaries by providing services that are not being handled by the existing parties to the plan.
For more information on CapSouth retirement plan services and to discuss how we can assist in managing your corporate retirement plan, please contact CapSouth.
