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9 Things Plan Sponsors Value Most from Their Advisor

The relationship between advisors and plan sponsors will be forever changed with the DOL conflict-of-interest rule. But there are some basics that will not change and that many advisors overlook.

Based on more than 150 TPSU programs with thousands of plan sponsors — mostly HR professionals at companies with 50 to 1,000 employees — here is some practical wisdom about the activities they expect and value the most:


  • Compliance. DOL auditing activity and fines continue to increase. Before anything else is addressed, make sure that the plan is in compliance and that there’s an ongoing process that makes the client feel comfortable so they can focus on other aspects of the plan.

  • Fiduciary Liability. We have adequately scared plan fiduciaries, especially with personal liability, so that these concerns are front and center. And while lawsuits are generally aimed at larger plans, they now have everyone's attention.

  • Engage Senior Management. Advisors partnering with HR professionals have to find a way to engage senior management, especially the CFO, in their DC plan. A recent Willis report indicated that 38% of plans are concerned about retirement readiness due to stagnant workforces causing higher labor costs (56% for companies without a DB plan). So maybe there is hope.

  • Limit Workload. Most HR professionals have 10+ jobs to do, and their highest priority is not managing benefits.

  • Be Proactive. Don’t wait to be asked questions or think you’re doing a good job by just responding promptly.

  • Bring New Ideas. If you do, you will rarely lose a client.

  • Employee Engagement. Be creative and show results. Customize by age, wage and retirement readiness.

  • Plan Design. Especially around auto plan features.

  • Investment Review. Though important, the value of advisors focused on investments is diminishing.


Here are the roles you should assume:

  • Quarterback. Coordinate all the activities of other vendors, like record keepers, TPAs, investment managers and even auditors. Take the lead!

  • Interpreter. Make everything simple; translate all the industry jargon into plain English.

  • Educator. Constantly teach conducting fiduciary training classes for all fiduciaries and the committee.

  • Coach. Especially to the employees.

  • Executive Assistant. Provide whatever they need, no matter how mundane. There’s often high turnover among the people who run the DC plan, so if you know everything and have the documentation, you can win over a new administrator instantly.

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