HR Pulse - Fall 2007 - (Page 56)

this position include: many 403(b) plans do not have formal committees or investment policy documents, perhaps because 403(b) rules are slightly different; the market forces have not yet pushed providers to fully discontinue the use of higher expense annuity products as 403(b) investment vehicles; and, the average proportionate investment in guaranteed interest accounts is considerably higher in 403(b) plans than 401(k). What should committees do? Whether you have a 401(k), a 403(b), or both, the starting point is to take seriously the responsibility for oversight of plan investments. Recognize the importance of process in protecting the committee and achieving optimal results for plan participants. If the committee needs to import expertise, engage an independent investment consultant. Be mindful of conflicts of interest. Our firm publishes a series of “Fiduciary Tips for Plan Sponsors” from which the following list comes: Six Key questions for retirement plan committees to ask internally 1. Do we know the total plan expenses being charged against participant accounts? 2. Do we know how our total expenses compare vs. the industry for similar plans? 3. Do we know the revenue sharing components and who is getting paid what for specific services? 4. Do we know if fees being paid from revenue sharing are reasonable? 5. Are lower expense share classes of our funds available? 6. Have we identified potential conflicts of interest that could negatively impact participants? Summary On the issue of plan fees, the pendulum is swinging toward the heads of retirement plan committee members. In this author’s opinion, best practices dictate having formal documentation of a process by which fees have been evaluated. It is suggested that you do it before plaintiff attorneys do it for you. n Available resources • A sample of a fee analysis spreadsheet can be found at http://www.captrustflorida.com/resource.pdf • DOL issued a ten question checklist for evaluating consultants http://www.dol.gov/ebsa/newsroom/fs053105.html • CapTrust Fiduciary Insights electronic newsletter – http://www. captrustflorida.com/inst_retirement_plans/fiduciary_ins.html • Request your free copy of Best Practices for 401(k) Investment Committees, a how-to book filled with practical suggestions for plan fiduciaries. Email Faye.wohlferd@captrust.com and request your book. James E. (Jeb) Graham, CEBS, CIMA®, Accredited Investment Fiduciary™, is a retirement plan consultant with CapTrust Advisors. He has written articles for or been featured in several industry publications, is the past chair of the American Society of Pension Professionals and Actuaries (ASPPA) Govt. Affairs – Investment Regulations Committee, and served four years on the ASPPA 401(k) Summit Committee. ZurickDavis conducts leadership searches for health care organizations, ﬁlling management and physician leadership positions at every organizational level from Trustees and CEOs to Department Directors. » ZDexec for Executive Search » ZDmd for Executive Physician Search » ZDcoach for Executive Coaching » ZDinterim for Interim Search See our website at www.zurickdavis.com or call us at 781.938.1975 56321366_ZurichDavis.indd HR Pulse Fall 2007 1 4/18/07 7:50:17 AM Thinking about outsourcing your tuition assistance or scholarship programs? we make it easy. For 30 years, Scholarship Management Services has managed education assistance programs that work for organizations of all sizes. Contact us today and find out how we can make it easy for you. 1-800-537-4180 smsinfo@scholarshipamerica.org www.scholarshipmanagement.org 328335_Scholarship.indd 1 5/8/07 8:35:37 AM http://www.zurickdavis.com http://www.scholarshipamerica.org http://www.captrustflorida.com/resource.pdf http://www.dol.gov/ebsa/newsroom/fs053105.html http://www.captrustflorida.com/inst_retirement_plans/fiduciary_ins.html http://www.captrustflorida.com/inst_retirement_plans/fiduciary_ins.html

Table of Contents Feed for the Digital Edition of HR Pulse - Fall 2007

Contents Executive Director’s Letter President’s Message HR Leader Profile: Lisa McDaniel Spotlight on Community Citizenship Culture of Engagement How Transparent Should Healthcare Compensation Be? The Value of Assessment Testing in the Recruitment Process Technology Dramatically Changes FMLA Compliance Creating a Magnetic Culture™ Taking It to the Hill: An Advocacy Update 401(k) / 403(b) Fee Lawsuits – Are You the Next Target? Compensation Offers – A Better Process Find It Again Pulse Points Who, Why and Where Conference Highlights Schedule at a Glance Keynote Speakers Social Events Conference Sponsors Exhibitors Index to Advertisers

HR Pulse - Fall 2007

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