Plansponsors with Advisors

• Many plan sponsors are beginning to understand the need to ask if their plan advisor will put their fiduciary status in writing. This has become an industry “catch phrase” due to the changing legislative landscape.
• ERISA requires plan sponsors to select and monitor plan investments in the same manner as persons familiar with generally accepted investment theories and prevailing investment industry practices.
• Where plan sponsors lack the needed technical knowledge to properly select plan investments, they are required to hire knowledgeable advisers. DOL Regulation §2509.95-1(c)(6) states: “unless a fiduciary possesses the necessary expertise to evaluate such factors, he would need to obtain the advice of a qualified, independent expert.”
• To the extent the advisor is prohibited from rendering fiduciary services by their firm, the plan sponsor will be required to seek advice from another firm.
• FPR offers a solution that complements the existing advisor relationship by permitting the current advisor to remain on the plan to focus on their expertise of participant guidance.
• FPR shifts investment management fiduciary risk from the plan sponsor AND advisor to act as the plan-level fiduciary.
• FPR utilizes its technology to evaluate a plan’s current investments with available investments from the provider’s approved list as required by ERISA.
• Under ERISA Section 3(38), FPR will notify recordkeepers of fund changes before they are to take effect so they can begin the process of participant notification and fund mapping.
• FPR offers a Warranty, reinsured through Great American Insurance (AA rated), to protect the plan sponsors and recordkeepers from liability.

Plansponsors without Advisors

• FPR offers a full e-Fiduciary service for “orphan plans” as well as plans electing not to utilize a traditional advisor.
• ERISA requires plan sponsors to select and monitor plan investments in the same manner as persons familiar with generally accepted investment theories and prevailing investment industry practices.
• Many plan sponsors may have the sophistication to make investment decisions, but realize the need for third-party guidance and fiduciary assistance.
• Where plan sponsors lack the needed technical knowledge to properly select plan investments, they are required to hire knowledgeable advisers. DOL Regulation §2509.95-1(c)(6) states: “unless a fiduciary possesses the necessary expertise to evaluate such factors, he would need to obtain the advice of a qualified, independent expert.”
• FPR accommodates a plan’s existing funds and initiates monitoring without requiring disruption of the entire platform to conform to a select list of funds. Only funds that do not maintain a passing score will be recommended for change.
• FPR will work with a plan administrator, investment policy committee and trustees in the selection of funds so that their input is considered.
• FPR’s services fall under ERISA Section 3(38) so the discretionary authority granted from the regulation shifts risk away from the plan sponsor.
• FPR includes a certificate of fiduciary warranty reinsured through Great American Liability (AA), a third-party insurance company, to back its recommendations.