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 hiring an advisor/consultant to take fiduciary responsibility from a Retirement Committee for all investment related decisions including hiring and firing investment managers/funds.
Plan Sponsors need to become educated on what is involved in evaluating the OCIO/ ERISA 3(38) solution.
- Rank the key reasons or benefits for offering this service
- Decide if it is in the participant’s best interest
- Have a formalized review process
- Document any decisions