Our expertise is in the following areas:
Investment Management – With considerable time spent in the financial industry we know how different money management programs work, from an expense and operational standpoint. This allows us to pick cost-effective plan investment options that are fundamentally different from one another, covering the spectrum of categories. Benchmarking their performance means that the best options available are chosen and that they continue to remain viable as years pass. If performance in available options decays a change in platform may be warranted.
Plan Enrollment/Education – We have organized through third party organizations, and personally presented employee education meetings for plans in varying industries. Many of our past engagements have had multiple plant locations across the United States. At times our education meetings involved organizing language translation for segments of the employee group, such as Polish and Spanish.
Plan Design – Many factors go into running a qualified retirement plan. These can include use of a specialized profit sharing formula, such as New Comparability, or choosing whether or not to use a third party administrator. Special services are available through large corporate retirement plan providers. For plans above a certain scale an accounting firm must be employed to conduct an annual audit at reasonable cost. At times an executive compensation arrangement might be appropriate to allow valued high-level employees to save above and beyond an installed qualified retirement plan.
Cost Bench Marking – Understanding plan level expenses is key. Unfortunately the bottom line is not always easily discernible. Actual expense levels are listed on various documents, not assembled in one location. Aggregating this information so that the plan sponsor has a clear idea of what is being paid is a big part of what we do. With this in hand the plan sponsor can go to market every year and effectively comparison shop their plan. Keeping written reports of the comparison on file provides evidence of due diligence that can be presented in the event that management is questioned over plan fees by employees, union representatives, or legal representatives. If a financial advisor is involved we can also offer a clear idea of how much this person is being paid and whether or not it is within a reasonable range.
Formalizing the Plan Management Process – Prudent management practices suggest that plan sponsors create and maintain an investment committee. This includes formally creating the governing body, an investment policy statement, and choosing and maintaining a regular and recurring meeting schedule. Keeping written documentation of this process on file serves as proof fiduciary duties were carried out to anyone who may ask in the future.
Chicago Benefits Consulting has worked with the following plan types: 401(k), Profit Sharing, SEP, Simple, Defined Benefit, Cash Balance, 412(i), Taft Hartley, ESOP and Non-Qualified Executive Benefit.