Upgrading Non-Profit Retirement Plans: Strengthening Your Plan with Advisory Services (Part 2 of 3) - MV Financial
 
  • Retirement Plan Insights
  • Annual Outlook
  • Arian Vojdani’s Millennial Wealth Blog
  • Market Commentary
  • MV Financial Research Insights
  • News & Events
  • Quarterly Newsletter
  • Weekly Market Flash
August 28, 2019 Nonprofits Have the Unique Ability to Supplement Healthcare Savings in Retirement
August 8, 2019 Webinar for Nonprofit Plan Sponsors: How to Fix Your Plans with Individual Annuity Contracts (IACs) [Recording]
July 11, 2019 Webinar for Nonprofit Plan Sponsors: How to Fix Your Plans with Individual Annuity Contracts (IACs) [Invitation]
June 6, 2019 How Your Organization’s Bottom Line is Impacted When Employees Don’t Save Enough for Retirement (Recording)
May 8, 2019 Webinar: How Delayed Employee Retirement is Hurting Your Bottom Line
April 2, 2019 Webinar for 403(b) Plan Sponsors: How to Ensure that You’re Covering Your Bases (Recording)
March 4, 2019 Webinar for 403(b) Plan Sponsors: How to Ensure that You’re Covering Your Bases (Invitation)
December 5, 2018 Retirement Plan Sponsor Webinar: The Fiduciary Alphabet Soup of Retirement Plans: What Does it Mean? (Recording)
October 4, 2018 Nonprofit Retirement Plan Sponsor Webinar: Moving Away from a Do It Yourself Approach (Recording)
September 12, 2018 Nonprofit Retirement Plan Sponsor Webinar: Moving Away from a Do It Yourself Approach (Invitation)
August 22, 2018 Webinar for Retirement Plan Sponsors: Unraveling the Complexity+Confusion to Get More from Advisors (Recording)
July 12, 2018 Webinar for Retirement Plan Sponsors: Unraveling the Complexity+Confusion to Get More from Advisors (Invitation)
June 7, 2018 Upgrading Non-Profit Retirement Plans: Upgrading IAC Plans to Open Architecture (Part 3 of 3)
May 22, 2018 Upgrading Non-Profit Retirement Plans: Strengthening Your Plan with Advisory Services (Part 2 of 3)
May 10, 2018 Retirement Plan Workshop for Nonprofit Plan Sponsors: May 31st, 2018
May 8, 2018 Upgrading Non-Profit Retirement Plans: Limitations of Individual Annuity Contracts (Part 1 of 3)
May 1, 2018 Not-For-Profit Plan Sponsor Webinar: How to Upgrade Your Existing Plan (Recording)
April 3, 2018 Not-For-Profit Plan Sponsor Webinar: How to Upgrade Your Existing Plan (Invitation)
May 22, 2018 | Retirement Plan Insights Retirement Plan Insights, Market Commentary | Joseph Potosky & Christopher Schaefer

Upgrading Non-Profit Retirement Plans: Strengthening Your Plan with Advisory Services (Part 2 of 3)

In our last post on modern retirement plan solutions, we noted that many academic and non-profit institutions over the years have retirement plan platforms that exclusively use individual annuity contracts (IACs). These outdated IAC platforms no longer meet the needs of today’s employers, employees, and the rapidly changing talent marketplace.

Among the deficiencies of legacy IAC plans: lack of compliance with recent fiduciary requirements, excessive costs, bulky and duplicative administrative processes, narrow investment choices, limited support and services, and a lack of education and investment advice for participants.

This post, the second in the series, examines how comprehensive advisory services provided by qualified investment professionals can help remedy the flaws of IAC plans. Your institution may have to keep its IAC plan, but you should consider working with an advisor who can help bring the plan into alignment with current best practices, regulations and employer/employee needs.

A majority of IAC Plans have not been updated or modified in the past 7 to 8 years to reflect advances or options that have become available, or changes in ERISA regulations. For example, these unmodified plans often have not revisited plan eligibility, compensation definitions, vesting schedules or added new features such as auto-enrollment, auto-contribution increases or Roth deferrals.

Proper plan design would allow employers to move to a single plan document and Form 5500 submission that streamlines workflow. At the same time, the plan document should be updated for compliance with current legal and tax requirements.

Qualified investment professionals, such as registered investment advisors (RIAs) can work with employers to bring these IAC plans up-to-date. In choosing an advisor, it is wise to make sure that they offer these additional services:

• Advisor support to help address proper plan compliance.  This includes both guidance on dealing with operational issues and investment requirements.

• Assistance with plan design to keep plans current with today’s marketplace.

• Additional fiduciary protection for investment selections through an ERISA 3(21) co-fiduciary advisor or preferably an ERISA 3(38) full fiduciary which I will explain in a later post.

• Employee education, including individual retirement plan investment support for participants, to help guide smarter investment decisions.

Speaking with a qualified RIA is a good way to learn about these and other advisory services that can provide both employers and employees with a more robust, compliant retirement plan solution.

In our next post, we will discuss how an open architecture platform may fit the needs of today’s employment marketplace.

To discuss how MV Financial can help your organization with its TIAA retirement plan, please contact Andrea Kessler at (301) 656-6545 or akessler@mvfinancial.com.