What Does a Retirement Plan Advisor Do for Employers?
Offering a workplace retirement plan creates an important employee benefit, along with ongoing responsibilities for the employer sponsoring it. Plan design, investment oversight, participant needs, fees, regulatory requirements, and administration can all require attention over the life of the plan.
A retirement plan advisor works with plan sponsors to help address these responsibilities and evaluate whether the retirement program continues to serve the organization and its participants.
What Does a Retirement Plan Advisor Help With?
The advisor's responsibilities depend on the plan and the services provided. Support may include:
Reviewing retirement plan design
Evaluating investment options
Monitoring plan investments
Reviewing plan fees and expenses
Supporting fiduciary processes
Coordinating with recordkeepers and other providers
Providing participant education
Reviewing plan participation and engagement
Helping sponsors document plan-related decisions
Some advisory firms have dedicated retirement plan capabilities. VestGen Wealth Partners, for example, works with plan sponsors through VestGen Retirement Services to design, implement, and manage workplace retirement programs.
Why Does Plan Design Matter?
A retirement plan can be structured in many ways. Eligibility rules, employer contributions, vesting schedules, automatic enrollment features, and other provisions can influence how the plan functions for both the organization and employees.
Plan design may also change as a business evolves. Growth in the workforce, changes in employee demographics, or shifting organizational priorities can create reasons to revisit the existing structure.
A retirement plan advisor can help sponsors evaluate available choices and coordinate with the professionals responsible for administration and compliance.
What Is the Advisor's Role in Investment Oversight?
Plan sponsors generally have fiduciary responsibilities when selecting and monitoring investments offered through an employer-sponsored retirement plan.
Investment oversight may involve establishing a documented process for evaluating the plan's investment menu, reviewing investment fees and characteristics, monitoring selected options, and considering changes when appropriate.
The specific fiduciary role of a retirement plan advisor can vary depending on the advisory arrangement. Employers should understand in writing which responsibilities the advisor accepts and which remain with the plan sponsor or other service providers.
Firms with retirement plan practices, including VestGen Wealth Partners, may provide fiduciary oversight as part of their services to plan sponsors.
How Can an Advisor Support Employees?
A workplace retirement plan ultimately depends on employees understanding how to use it.
Participant education may cover topics such as contribution decisions, available investments, retirement readiness, and general financial concepts. The format can range from educational materials and group meetings to individual participant support.
Employers evaluating advisors may want to ask what participant education is available and how frequently employees can access it.
Questions to Ask When Choosing a Retirement Plan Advisor
Before engaging an advisor, plan sponsors may want to ask:
Which types of retirement plans do you advise?
What fiduciary responsibilities do you accept?
How do you evaluate plan investments?
How are plan fees reviewed?
What participant education do you provide?
How do you coordinate with our recordkeeper and other providers?
How frequently will our plan be reviewed?
How are your services compensated?
Clear answers can help employers understand the scope of the relationship before selecting an advisor.
Conclusion
A retirement plan advisor can help employers manage the many decisions involved in maintaining a workplace retirement program, from plan design and investment oversight to participant education and ongoing review.
For employers considering outside support, firms such as VestGen Wealth Partners offer retirement plan advisory services for plan sponsors. The appropriate relationship will depend on the organization's plan, workforce, fiduciary needs, and desired level of support.
Frequently Asked Questions
What is a retirement plan advisor?
A retirement plan advisor works with employers that sponsor workplace retirement plans, providing services that may include plan design support, investment oversight, fiduciary services, and participant education.
Is a retirement plan advisor a fiduciary?
It depends on the advisory arrangement. Employers should review the advisor's agreement to understand whether the advisor accepts fiduciary responsibility and the scope of that responsibility.
What retirement plans can an advisor work with?
Depending on the firm, advisors may work with plans such as 401(k), 403(b), pension, profit-sharing, cash balance, and deferred compensation plans.