PLANSPONSOR - August/September 2019 - 48

2019 PLANSPONSOR NATIONAL CONFERENCE
chief operating officer (COO) at RFP360.
" Initially, you have to make sure the provider's
base capabilities are good enough for
you; if so, you can jump right in with all
of the great qualitative questions. " He
suggested doing a quick RFI or some
market checks through a third party first
to eliminate noncontenders.
To Jason Chepenik, managing
partner, Chepenik Financial, our 2019
Adviser of the Year Large Team winner,
there are several ways to narrow the field.
But to shop wisely, the sponsor must see
the prospective providers together, to
differentiate them. " Get them in the
room and interview them-that makes
for the most successful match, " he said.
Stewart noted that case studies are
invaluable. " You want someone who
understands your goals. Ask the provider
how it did something similar for another
client, maybe, of a similar size or industry. "
Sumitomo Machinery Corp. of
America, a 2019 PLANSPONSOR Plan
Sponsor of the Year finalist for Total
Retirement Offering, has had the same
recordkeeper and relationship manager
for 18 years. And though it has put out
many RFPs, said Mike Lulofs, human
resources (HR) director at the company, it
often finds those unnecessary. " Because of
the relationship we have with recordkeeper
Principal, we learn about changes as they
come to market-we don't wait for an RFP.
Principal knows us so well, and we know
its capabilities. That helps us feel we're on
the front edge of new things. "
Chepenik eases the RFP process
via tools such as RFP360 software; this
simplifies documentation and organization.
As to candidates, " your adviser
should be able to tell you which are a good
fit for your plan, " he said.
If an adviser recommends a short list
of recordkeepers, plan sponsors should
ask why he chose them, Hulsen interjected.
" If he can't give you good, solid
evidence, it makes me concerned. I'm
uncomfortable with an adviser suggesting
a recordkeeper he may have an exclusive
relationship with. " -Judy Faust Hartnett
Fiduciary Training
For retirement plan committees, fiduciary
training is key, said Benjamin
L. Grosz, a partner at Ivins, Phillips &
Barker, Chartered.
He noted some important basics:
Though committee members are also plan
participants, that should not affect their
decisions-those should be in the interest
of all participants. Members also must
differentiate between fiduciary and settlor
(FROM LEFT:) Judy Faust Hartnett of PLANSPONSOR; Benjamin L. Grosz of Ivins, Phillips
& Barker, Chartered; Dan Brandenburg of Wagner Law Group LLC; and Phyllis E. Klein of
CAPTRUST.
functions. According to Grosz, the sponsor
may assign fiduciary decisions to some
members and settlor or business decisions
to others. The committee must ensure all
decisions get implemented properly.
Fiduciary training should be done
at least annually, plus whenever a new
member joins the committee-both best
practices, he said.
Annual training topics should be
chosen based on committee turnover or
plan agenda items. " We don't want to
do the same training every time; what
they need to know could vary, " Grosz
said. For example, the committee may be
preparing to do a request for proposals
(RFP), or considering securities lending
for a defined benefit (DB) plan.
Phyllis E. Klein, senior director,
professional services, consulting solutions
group at CAPTRUST, said her firm
serves as a fiduciary alongside retirement
plan committees. " We do fiduciary
training when we get a new client, " she
said. " We do it at least every three years if
the client doesn't choose ... other options. "
CAPTRUST has electronically
recorded training, for quickly onboarding
new committee members. In the last
two years, she said, committees have
been asking for expanded or specialized
training-e.g., one wanted to learn about
investments, in preparation for its adviser's
quarterly investment reviews. Other
special training could address regulatory
audits, benchmarking, or fiduciary
liability insurance. The sponsor's legal
counsel might do the training, she added.
At Wagner Law Group LLC, training
is sometimes done ad hoc, in response
to a new lawsuit or regulation, said Dan
Brandenburg a partner. The means may be
a memo, a special meeting or the regular
committee meeting. -Rebecca Moore
Fiduciary Liability
Insurance
Rhonda Prussack, senior vice president
and head of fiduciary and employment
practices liability at Berkshire Hathaway
Specialty Insurance Co., said fiduciary
liability insurance has been around
48 PLANSPONSOR.com August - September 2019
Photography by Matt Kalinowski
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