Fiduciary Services for Employer Retirement Plans

Today's institutional fiduciary (an employer that provides retirement plans to employees) faces a dynamic and challenging environment. Personal liability, complex laws & regulations, lack of fee transparency, conflicts of interest, and increased scrutiny by investors and regulators represent just a few of the threats that must be addressed.

LeafHouse Financial Advisors provides guidance, oversight, and fiduciary governance solutions to individuals who serve on committees for retirement plans, trusts, and foundations.  The result is an integrated program that puts in place processes resulting in better-informed decision-making, risk management, cost-competitiveness, and a higher probability of successful outcomes.

LeafHouse differs from “brokers” because we are not acting in the role of a retirement plan salesperson.  As a Registered Investment Advisory firm, we explicitly accept 3(21) or 3(38) fiduciary status that obliges us to act solely and exclusively to benefit the plan and its participants.  Our fees are clearly disclosed and we are not compensated by any retirement plan provider or mutual fund company.  This allows us to avoid the conflicts of interest that plague the retirement plan industry.  We serve as an ERISA Consultant and Fiduciary to the plan.

What is a Third Party Fiduciary?

A third party fiduciary accepts the same fiduciary responsibility as Plan Sponsors. This means that they are held to one of the highest legal standards in existence and have a duty to act in the sole interests of plan participants.  In the case of a Department of Labor audit or any type of litigation, a co-fiduciary stands beside you rather than being let off the hook.  An ERISA 3(21) fiduciary serves in a non-discretionary capacity meaning that they provide advice but the Plan Sponsor makes the ultimate decision.  An ERISA 3(38) has discretionary authority and is focused on the selection, monitoring and replacement (as necessary) of the underlying investments within a portfolio.  LeafHouse Financial Advisors is capable of serving in either capacity.  Furthermore, a third party fiduciary is able to give participants specific investment advice on their accounts.

Assess Your Fiduciary Risk

Effective July 1st, 2011, the Department of Labor will now require Plan Sponsors to collect specific information about the costs of their retirement plan and the fiduciary status of their service providers.  Plan Sponsors must then determine whether these costs are “reasonable” and eventually disclose all fee information to participants on a per-account basis.

In order to prepare Plan Sponsors for their new responsibilities under impending DOL regulations, LeafHouse Financial Advisors offers a free Fee, Administrative, and Compliance (FAC) Assessment of any covered retirement plan (401(k), 403(b), 457, etc.).  This assessment will provide the Plan Sponsor with the following:

  • Detailed breakdown of all current plan costs, including difficult to determine fees
  • Benchmarking of those costs to other similar plans across the nation
  • Review of plan features in relation to the marketplace
  • Synopsis of your fiduciary risk level given the status of your Investment Policy Statement
  • Evaluation of current investment choices in relation to best practices and the criteria listed in your IPS
  • List of compliance issues and suggested solutions to those problems

Click HERE to directly access the Department of Labor fact sheet on the upcoming 408(b)(2) fee disclosure regulations.

Benefits of Our Approach

Objectivity – As a truly independent firm, we don’t sell any products, represent any plan providers, or receive any third-party compensation or commissions in regard to your retirement plan.  We operate solely on your behalf with no bias or conflicts of interest.

Straightforward Pricing – We charge a flat fee based on the scope of services we provide your company.  We can also help you uncover and reduce any excess fees within your plan so that you have complete transparency and greater control.

Accountability – As an acknowledged fiduciary, we stand beside you and provide the guidance, oversight, and advice you need to make better decisions and manage your personal liability.

Flexibility – You determine how you want to engage our firm and we work with you to structure our services and solutions to meet your needs. 

Results-Driven – We empower you with the tools and analysis necessary to make prudent, cost-effective decisions that focus on providing the highest level of service and choice to you and your employees.

Expertise – We specialize in the retirement plan marketplace and keep abreast of the regulatory climate so you don’t have to.

List of Fiduciary Services

Investment Policy Statement Development – A written investment policy statement is the only way to demonstrate a thoughtful process that helps ensure that investment decisions are prudent and well-informed.   We help you develop your overall investment policy approach and create your Investment Policy Statement which describes the procedures and metrics used to manage the investment process.

Monitoring and Reporting Key Metrics - Monitoring investments is an essential part of discharging your fiduciary responsibilities. Performance monitoring and reporting can assist you in making sure your investment decision making is in line with your investment policy.  We assist you by tracking key metrics to confirm investment performance adheres to your Investment Policy Statement, identifying any areas of concern, and recommending changes as necessary.

Ongoing Fiduciary Governance – If you are to have sound fiduciary discharge of your duties, you must establish a sound fiduciary governance system.  We help you develop and implement the optimal organization and governance design for your plan.

Vendor Search & Selection – Selecting your 401(k) vendor is a serious fiduciary obligation.  We will assist in you developing your selection methods, guide you through the evaluation process, provide you a written recommendation, and help you manage the implementation process once you’ve made your decision.

Fee Assessment/Negotiation – As an ERISA fiduciary you have an obligation to ensure that your plan’s fees and expenses are reasonable in light of the level and quality of services being provided.  Typically, plan sponsors lose track of the total plan expenses.  We help you uncover and document all the fees (both obvious and difficult) associated with your plan and recommend specific steps you can take to reduce those fees, if applicable.  When appropriate, we will assist you in negotiating the fee arrangements.

Education of Employees – In order to fulfill your fiduciary duties to your plan participants (and in order to provide a valuable benefit for your employees), you need to have a benefits education structure in place. We will assist in providing both online and on-site education for your organization.