The Plan Sponsor University (TPSU) announced that it has hired industry veteran Andy Kelleher to assist 401(k) and 403(b) plan sponsors conduct due diligence on their plan advisor or consultant, as part of the organization’s Retirement Plan Advisor Due Diligence Center (rpaDD).
ERISA requires plan fiduciaries to make sure that all vendors paid out of plan assets are qualified and that their fees are reasonable. As such, 401(k) and 403(b) plan sponsors rely on their advisor or consultant to perform due diligence on investments and their recordkeeper. While that same principle applies to their advisor or consultant, they cannot conduct due diligence on themselves, TPSU explains.
In fact, one of the most important decisions a plan sponsor will make is hiring the right advisor or consultant yet there are surprisingly few resources to help. What’s more, with increased litigation and regulatory scrutiny, along with declining fees, benchmarking and going to market through a request for proposal are critical, the organization notes.
Meanwhile, with over 35 years of experience in the retirement services industry, Kelleher is uniquely positioned to help DC plan sponsors search for and benchmark their advisor or consultant, having previously worked directly with plan sponsors in roles at MassMutual, Fidelity Investments, and TIAA. As part of this new role, he will work with DC plans to conduct an advisor RFP, which is required every five to seven years even if the plan is completely satisfied.
For more information about rpaDD and TPSU, visit https://www.tpsuniversity.com/rpadd-center/
