Documenting your investment committee decisions isn’t exactly exciting – but it is necessary if you want to avoid problems down the road. Phil Edwards of Curcio Webb shares why it’s so important for investment committees for defined contribution plans need to spend time documenting their decisions.
This video is part of a series on Defined Contribution Plans. Be sure to also watch “Focus on Defined Contribution Plan Outcomes.”
Is your Investment Committee Focused on Outcomes?
Most are not. Most investment committees spend 80% of their time managing investments. We believe you should think and plan more holistically to achieve the goals that are best for your company – and for plan participants.
If after watching this video, you’d like to talk, schedule a 30-minute call with us!
Your relationship with a Health & Welfare consultant is an important partnership that must be cultivated over time. However, there are signs that indicate when it’s time to start looking for a new consultant partner:
- Seeing High Turnover in Your Consulting Team. As consulting firms experience turnover, this could trickle down to your team. Some turnover is good as it provides you with new team members who can share new ideas or help refine current processes, but cycling through consultants on a consistent basis is a red flag.
- Experiencing a Service Level that has Gone Steadily Downhill. At the start of any new consulting relationship, it is not uncommon to have a very engaged and proactive consulting team. That same level of service may diminish as the relationship matures over time.
- You are Experiencing Organizational Changes. As your Benefits/HR team or organization (through a merger, acquisition or divestiture) undergoes change, your current Health & Welfare Consultant team may not be the right fit for the new team or organizational structure.
- Your Needs have Evolved. Your organization or benefits administration strategy may have grown in complexity (e.g., new populations, new focus on wellness, etc.) and your consulting needs may have outgrown your current consultant relationship.
- It is Time to See What Else is Out There. It may be time to hear from other benefit experts with different perspectives to determine if your current consultant is the right partner for the long-term.
As an independent and objective benefits advisor, we can help you conduct a search for a Health & Welfare benefits consultant that will be a great fit for your needs. We typically begin each project by benchmarking your current fees and services. If warranted, we can then help you conduct a full marketplace evaluation.
Curcio Webb utilizes a flexible and proven evaluation process, honed through 20 years of experience and ensures our clients have a market competitive consulting agreement at the end of the process. Let us help you achieve your goals.
Ask us how to get started with a benchmarking project!
Written by: Gayle Michaels, Curcio Webb
The popularity of managed accounts is bringing more providers into the managed account providers market. As little as five years ago, plan sponsors were captive to a single managed accounts provider being associated with a recordkeeper. Because this is no longer the case, plan sponsors often have a choice between managed account providers.
How you do choose the right managed account provider?
As a fiduciary, you are responsible for selecting the right managed account provider for your organization. How do you decide? Where will you find differences between managed account providers? As with any evaluation, getting the right answer depends on asking the right questions. Here are 6 key questions we ask when getting started in a managed account provider selection:
Question #1: What’s your investment philosophy?
The underlying investment philosophy differs across managed account providers. Some are proponents of a passive management approach while others acknowledge the benefits of active management. The approach you take should align with the demographics of your plan participants. Will they do their own retirement planning research? Or are they best served by having their investments more closely managed by a seasoned investment advisor? Another thing to look at is how they are making capital market assumptions, which is always an important factor in determining basic portfolio allocations. Some providers adjust their assumptions annually and others make quarterly adjustments. Read more
Active health insurance exchanges are growing in popularity.
Although adoption rates for active health insurance exchanges (HIX) have not yet reached the levels predicted when these delivery models first hit the market, steady growth continues as employers evaluate health & welfare benefit administration delivery strategies. The Kaiser Family Foundation and the Health Research & Educational Trust 2016 Employer Health Benefits Survey showed that twenty-eight percent of employers with 5,000 or more employees are considering HIX models to more effectively deliver benefits and manage costs.
The HIX marketplace is evolving
The HIX marketplace continues to evolve with enhanced delivery models, new service providers and expanded offerings. Evaluating the merits of adopting a HIX strategy and selecting the service provider best positioned to deliver on this strategy can be challenging. Desired outcomes will be diminished without a meticulous focus on building a solid foundation through one of the most critical phases of the process—implementation and effective change management.
Are you meeting ACA reporting compliance standards?
The United States Supreme Court’s ruling on the Affordable Care Act (ACA) (Burwell decision) has plan sponsors focusing on ACA reporting compliance. While there are a number of organizations that will help you with the required reporting, there are a few areas that first must be addressed. Read more
Are you a plan sponsor?
In 2015, the Supreme Court unanimously ruled that ERISA fiduciaries have a continuing duty to monitor plan investments. While this outcome had little in the element of surprise, it presents an opportunity for plan sponsors to review their benefits provider governance structure.