Retirement Plans

We help companies design and deliver retirement benefits that put their employees in a position to successfully retire when the time comes. Our clients appreciate our diligent investment process and our ability to develop and implement strategies that minimize retirement plan costs and maximize outcomes. 

3(21) & 3(38) FIDUCIARY SUPPORT

As a plan sponsor and fiduciary, it's up to you to handle administration, oversee plan management, and make decisions regarding plan assets. If that's not enough, you're also tasked with regulatory compliance and legal liability - not to mention the plan's overall performance.

We can help. We do more than provide investment expertise - we share the burden of responsibility and our independent team of accredited advisors follow industry best practices for fiduciary governance and when advising clients.

INVESTMENT SELECTION & MONITORING

Our investment services are rooted in proven investment principles, well-documented participant behavior, advances in plan design, and the evolving regulatory environment. We're focused on helping you offer a robust investment lineup that suits your organization, and provide participants with the right tools to make sound retirement decisions. We advise on the construction of a retirement plan investment strategy, the selection of asset classes for inclusion within the strategy, and the selection and monitoring of the funds within the investment menu.

 

We believe that no single solution exists that meets the needs of every retirement plan participant. Within a single plan, the level of sophistication among participants can vary widely with some participants being new to investing and others being sophisticated managers of their retirement wealth. We work with our clients to implement strategies that meet the diverse needs of your unique population.

Our process includes:

  • Investment menu design. Plan participants rely on their plan sponsor to prudently manage the plan with their best interests at the heart of all decision-making. Using a vigilant process that carefully balances the objectives of our clients’ retirement plan with the overall needs of the participants, we advise our clients on a high-quality menu of investments and monitor that menu for continued success.

  • Target Date Fund and Qualified Default Investment Alternative selection. We work with our clients to find default solutions that are appropriate for their population and investment philosophy.  For many clients that means assistance with analyzing plan demographics to identify target date strategies that meets our investment standards, as well as the needs of their population and plan design.

  • Investment Manager selection. We evaluate active and index solutions for our clients.  For indexes we review cost, approach, and risk controls, while for our active managers we conduct investment manager due diligence that underly fund recommendations. We evaluate philosophy and process, portfolio construction and risk controls, and team structure.

  • Managed account review. Similar to investment profiles, we provide qualitative analysis of the vendor’s managed account solution to determine fit and value.

PLAN DESIGN

An assumption underlying any voluntary retirement plan is that employees make good financial decisions that they are able to implement. A weakness of this approach is that many of your employees make poor choices, resulting in retirement income that is insufficient to sustain them through retirement. 

 

Together we help plan sponsors consider the powerful and positive impacts of behaviorally based programs that “automate” improved saving and investment decisions. These programs have been found to be more effective than traditional educational programs alone.

EMPLOYEE EDUCATION

It’s not just about retirement. Each of your employees brings a unique set of qualities into the workplace — attributes related to family, lifestyle, health, and finances that help shape who your employees are and how they work. As we work to guide employees towards financial freedom, it’s crucial to recognize that, for many, saving for retirement isn’t their top priority. 

 

Workers struggle to balance competing financial priorities, and in order to achieve financial wellness, they need help in every phase of life.

FEE BENCHMARKING

The Employee Retirement Income Security Act of 1974 (ERISA) requires retirement plan fiduciaries to ensure that all fees paid out of the retirement plan are reasonable in light of the services rendered. Plan sponsors are not required to purchase services from the lowest bidder, but they must be able to demonstrate a deliberative process by which the reasonableness of applicable fees is regularly considered.

 

The topic of fee reasonableness has become a critical Department of Labor focal point since the late 2000s, making it important for plan sponsors to be able to articulate the process by which fiduciaries conclude that all plan fees are reasonable considering relevant facts and circumstances. 

 

Action Point Retirement provides plan specific fee benchmarking analysis to assist our clients in meeting the fee reasonableness standard. We use proprietary market pricing data to estimate the fee range specified in our analysis report. Our goals in providing the annual fee benchmarking analysis to our clients are as follows:

  • Assist clients in meeting ERISA’s fee reasonableness standard

  • Assist clients in maintaining a fee reasonableness best practice by providing a meaningful comparison

  • Assist clients in understanding applicable plan services fees by discussing the current fee structure