Businesses

Well managed retirement plans have fundamental elements that are evidenced through the fiduciary process. This is a disciplined process that ensures your retirement plan follows ERISA guidelines and well as best practices.

• Understand the primary goals, strengths, and challenges of the plan relative to objectives that define success, and actions that achieve success.
• Maintain defined fiduciary responsibilities. Through proper guidance we ensure they are understood and acknowledged.
• Concise and formal strategy to manage the investment suite utilized by your employees.
• Investment monitoring and documentation
• Review of service providers as well as benchmarking providers and investment options
• Centralized compliance file
• Participant education for your employees.

The Investment Policy Statement should be developed and updated. The IPS is not required by law but it is a document that regulators and the Department of Labor will review when they conduct an audit.

A carefully crafted IPS includes:

• Criteria to comply with the safe harbor provisions ERISA section 404(c) and state the intention to comply with it. Having a 404(c) compliant plan shields the plan sponsor from lawsuits brought by participants for losses on investments in the plan.
• Eligible investments should be outlined in order to provide appropriate investments for the plan.
• Prohibited Investments should be defined to not be allowed as an investment option in the plan
• Roles and responsibilities of the fiduciaries, investment committee, custodian, investment advisor, and investment manager. The IPS provides guidance and definitions.
• Investment option selection criteria. A defined investment selection process serves as a guideline for proper decisions.
• Investment option monitoring process. An important role is to monitor the investment suite in the plan. Reports are provided and reviewed to achieve this important task.
• Investment option replacement criteria. A process is important that provides an opportunity to replace investment options as needed.

Business is extremely competitive, not only for customers, but also valuable employees. Making sure your employees have access to and effectively utilize the retirement plan is paramount to creating greater morale and loyalty. We will be the opportunity for your employee corps to learn how the plan works for them, their families, and how to customize their strategy based on their goals. Financial stress among your employees will be reduced, peace of mind will increase as well as productivity. What we have found is that with greater education and knowledge, there are substantial increase in participation.

Importantly, your employees gain a greater appreciation for you and your company as they realize how the plan you provide impacts their lives far into the future. We implement this with a robust personal service strategy and schedule designed to be provided for all in your company. (Includes a service schedule and calendar)

It is a Fiduciary’s responsibility to ensure the participants do not pay excessive fees.

• We will find opportunities for efficiencies, and benchmark those fees and costs. (Includes a graph from a graph resource)
• Understand where fees are coming from and where this compensation is going.

How do the Plan fees compare
to the average in the Benchmark Group?

• this plan's fees are approximately 1.32% per year
• this is 0.18% more per year
• this is equal to $11,690 more per year
• this is $63 more per participant per year
   

Implementing a prudent plan management process is imperative for the execution of proper governance. Managing a plan involves liabilities and risks that can, with guidance, be mitigated for the HR manager, CEO, CFO, and anyone who takes on a fiduciary role with the plan.

Bailey Investments Group employs a disciplined process, and professional resources to conduct a comprehensive risk analysis to reveal what is being done right, and where certain risks may be lurking.

① Identify and understand strengths and challenges relative to goals and objectives

• Definition of a successful plan

② Deploy and monitor fiduciary responsibilities

• Maintain defined fiduciary roles
   

③ Craft an investment policy statement

• Investment selection criteria and investment monitoring
   

④ Monitor and review expenses as well as service providers

• Due Diligence strategy
   

⑤ Effective employee and participant education program

• Employee education and success
   

⑥ Implement effective management process

• 401(k) Plan administration

Maintain a state of the art understanding of your retirement plan’s functions, fee structure, success, risk reduction, performance, and best practices in relation to other employers and plan providers.