PLANSPONSOR - October/November 2019 - 27
To have a
well-performing
lineup, sponsors
should know
how to choose or
change the funds
ADVISER JAMES LYDAY recently asked members of a client's plan committee how
they arrived at the fund-monitoring criteria in the plan's investment policy statement
(IPS). Nobody knew.
That kind of response concerns Lyday, managing director at Pensionmark
Financial Group LLC in Nashville, Tennessee, and an individual finalist for the 2019
PLANSPONSOR Retirement Plan Adviser of the Year award. Many sponsors seem
unaware of their ongoing fiduciary responsibilities for investment monitoring and
deciding whether to make a fund switch-responsibilities they have even if they work
with a 3(21) fiduciary adviser, he says.
" The last handful of new clients I've taken on had an IPS, but their overall investment
menu construction wasn't good, " Lyday says. " Plan sponsors have a business to
run, and they get busy. They take a lot of things for granted, and many of them just
assume their provider or adviser is taking care of it. They need to understand that
a 3(21) fiduciary role for an adviser is a co-fiduciary role, and the responsibility still
ultimately falls to the plan sponsor for making decisions on the plan's investments. "
The potential risks of a plan sponsor not fully understanding its responsibilities
include inadequate monitoring of funds' performance, offering share classes with
unnecessarily high costs, and having inappropriate asset allocation, Lyday says. The
possible ramifications of those problems range from suboptimal outcomes to litigation
against the sponsor, he adds.
Art by Red Nose Studio
PLANSPONSOR.com October - November 2019 27
DRIVEN
INVESTMENT
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PLANSPONSOR - October/November 2019
Table of Contents for the Digital Edition of PLANSPONSOR - October/November 2019
Investment-Driven
2019 DC Survey: Plan Benchmarking
Projecting Participant Outcomes
Just Around the Corner?
The Search for Basis Points
It Could Be Time to De-Clutter
PLANSPONSOR - October/November 2019 - C1
PLANSPONSOR - October/November 2019 - FC1
PLANSPONSOR - October/November 2019 - FC2
PLANSPONSOR - October/November 2019 - C2
PLANSPONSOR - October/November 2019 - 1
PLANSPONSOR - October/November 2019 - 2
PLANSPONSOR - October/November 2019 - 3
PLANSPONSOR - October/November 2019 - 4
PLANSPONSOR - October/November 2019 - 5
PLANSPONSOR - October/November 2019 - 6
PLANSPONSOR - October/November 2019 - 7
PLANSPONSOR - October/November 2019 - 8
PLANSPONSOR - October/November 2019 - 9
PLANSPONSOR - October/November 2019 - 10
PLANSPONSOR - October/November 2019 - 11
PLANSPONSOR - October/November 2019 - 12
PLANSPONSOR - October/November 2019 - 13
PLANSPONSOR - October/November 2019 - 14
PLANSPONSOR - October/November 2019 - 15
PLANSPONSOR - October/November 2019 - 16
PLANSPONSOR - October/November 2019 - 17
PLANSPONSOR - October/November 2019 - 18
PLANSPONSOR - October/November 2019 - 19
PLANSPONSOR - October/November 2019 - 20
PLANSPONSOR - October/November 2019 - 21
PLANSPONSOR - October/November 2019 - 22
PLANSPONSOR - October/November 2019 - 23
PLANSPONSOR - October/November 2019 - 24
PLANSPONSOR - October/November 2019 - 25
PLANSPONSOR - October/November 2019 - Investment-Driven
PLANSPONSOR - October/November 2019 - 27
PLANSPONSOR - October/November 2019 - 28
PLANSPONSOR - October/November 2019 - 29
PLANSPONSOR - October/November 2019 - 30
PLANSPONSOR - October/November 2019 - 31
PLANSPONSOR - October/November 2019 - 2019 DC Survey: Plan Benchmarking
PLANSPONSOR - October/November 2019 - 33
PLANSPONSOR - October/November 2019 - 34
PLANSPONSOR - October/November 2019 - 35
PLANSPONSOR - October/November 2019 - 36
PLANSPONSOR - October/November 2019 - 37
PLANSPONSOR - October/November 2019 - 38
PLANSPONSOR - October/November 2019 - 39
PLANSPONSOR - October/November 2019 - Projecting Participant Outcomes
PLANSPONSOR - October/November 2019 - 41
PLANSPONSOR - October/November 2019 - 42
PLANSPONSOR - October/November 2019 - 43
PLANSPONSOR - October/November 2019 - Just Around the Corner?
PLANSPONSOR - October/November 2019 - 45
PLANSPONSOR - October/November 2019 - 46
PLANSPONSOR - October/November 2019 - 47
PLANSPONSOR - October/November 2019 - The Search for Basis Points
PLANSPONSOR - October/November 2019 - 49
PLANSPONSOR - October/November 2019 - It Could Be Time to De-Clutter
PLANSPONSOR - October/November 2019 - 51
PLANSPONSOR - October/November 2019 - 52
PLANSPONSOR - October/November 2019 - 53
PLANSPONSOR - October/November 2019 - 54
PLANSPONSOR - October/November 2019 - 55
PLANSPONSOR - October/November 2019 - 56
PLANSPONSOR - October/November 2019 - C3
PLANSPONSOR - October/November 2019 - C4
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https://www.plansponsordigital.com/plansponsor/march_april_2023
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https://www.plansponsordigital.com/plansponsor/august-september_2019
https://www.plansponsordigital.com/plansponsor/june-july_2019
https://www.plansponsordigital.com/plansponsor/april-may_2019
https://www.plansponsordigital.com/plansponsor/february-march_2019
https://www.plansponsordigital.com/plansponsor/december_2018-january_2019
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