Retirement Plan Committee – Comperio Retirement Consulting, Inc.

Do you find your 401(k) plan fee’s confusing?

April 28, 2021

Managing Your 401(k) Fees Retirement plans commonly include funds that engage in revenue sharing, which is crediting a portion of the fund expense ratio paid by participants back to the plan. Using revenue sharing to pay all or a portion of plan administrative expenses is an acceptable practice. On the surface, this practice does not seem unfair, but unfortunately, using revenue sharing to pay plan expenses can fall far short of fair. Let’s take a look at why. Most 401(k)…

OCIO Services – DISCONNECT BETWEEN TOP PLAN SPONSOR GOALS AND OCIO PROVIDER GOALS!

February 24, 2021

Comperio Retirement Consulting

Investments, Retirement Plan Committee

There is considerable confusion on exactly what OCIO services mean. Simply put, the primary difference in OCIO versus traditional consulting services is who owns final discretion for the selection of managers/funds and the execution of investment decisions. According to the PGIM survey, the top objective for plan sponsors is very different than OCIO service provider goals. All Plan Sponsors considering the benefits of implementing this type of service should begin by identifying internal goals and priorities before conducting due diligence…

OCIO/ERISA 3(38) Arrangements Increase

February 16, 2021

Comperio Retirement Consulting

Investments, Retirement Plan Committee

Why bring attention to a service 64% of Plan Sponsors have not evaluated yet? As the Great One said, Wayne Gretzky, “I skate to where the puck is going, not where it has been.” Projections are that OCIO assets will rise from $1.1 Trillion to $1.7 Trillion in the next 3 years according to Cerulli Associates. Plan Sponsors are being approached by their current advisors/ consultants or new consultant touting the OCIO or ERISA 3(38). The OCIO/ERISA 3(38) term means…

CARES Act Distributions

February 2, 2021

Comperio Retirement Consulting

Retirement Plan Committee

Hot Topics for 2021

January 22, 2021

Comperio Retirement Consulting

Fees, Investments, Retirement Plan Committee

Recent changes continue to reshape the Retirement landscape due to Recordkeeper and Advisor/Consultant Consolidation. Plan Sponsors should be prepared to evaluate how these changes will affect their plans and participants.

Managed Accounts

January 22, 2021

Comperio Retirement Consulting

Investments, Retirement Plan Committee

Managed Accounts All 401(k) Plan recordkeeping firms are experiencing margin compression in their core business and seeking ways to increase their revenue in other areas, such as selling Managed Accounts. It is critical that Plan Sponsors realize Managed Accounts are NOT a service but an investment product. Why the distinction? A Managed Account as an investment product means you have a fiduciary duty to conduct due diligence to evaluate the benefits. As with any fiduciary decision, it is important for…

OCIO/ERISA 3(38)

January 21, 2021

Comperio Retirement Consulting

Investments, Retirement Plan Committee

OCIO/ERISA 3(38) As this consolidation has occurred on the advisor side, Advisor firms are actively positioning OCIO (Outsourced Chief Investment Officers), ERISA 3(38) or Discretionary Asset Management services to Plan Sponsors. The three terms are used interchangeable and relate to hiring an advisor/consultant to take fiduciary responsibility from the Retirement Committee for all investment related decisions including hiring and firing investment managers/funds in your retirement plan. Generally, Committees are utilizing this service due to: Plan Sponsors considering the implementation of…

Advisors/Consultants Consolidation

January 20, 2021

Comperio Retirement Consulting

Retirement Plan Committee

Advisors/Consultants Consolidation The consolidation craze has made its way to the Retirement Plan Advisor/Consultant marketplace. Private equity firms, large financial services organizations and national benefits firms have all entered into agreements to acquire retirement plan advisory/consulting resources. Examples include: With 401(k) and other types of retirement plans becoming more complex, Plan Sponsors have become reliant on their advisor/consultant to provide unbiased advice. The recent advisor/consultant consolidation is blurring the lines as firms, who were primarily focused on independent 401(k) consulting,…

Recordkeeping Consolidation

January 19, 2021

Comperio Retirement Consulting

Retirement Plan Committee

Recordkeeping Consolidation Continued fee compression in 401(k) plan recordkeeping services is accelerating the need for economies of scale. Whether it is continued technological improvements, such as the adoption of cloud technologies or the need to offer a wider suite of services, recordkeepers are realizing they need to adjust or exit the business. Perhaps the best example of this trend occurred in 2020 when Vanguard partnered with Infosys, Ltd. of India. Infosys has assumed operational control of the recordkeeping platform, including integrating all…

CARES Act Update

March 27, 2020

Comperio Retirement Consulting

General, Retirement Plan Committee

CARES Act – New Employee Benefit Tools to Support Affected Employees By: Jim Rourke and Mike Brittingham with Nexsen Pruet, LLC. Signed by President Trump on March 27, 2020, the CARES Act adds a few new tools to employers’ employee benefit arsenal. Many changes – such as the increase in plan loans limits and hardship distribution conditions – expand longstanding benefits concepts. However, other changes – such as the availability of federal loans, that may be forgiven, to cover payroll…