Since 1974 when ERISA was first enacted, plan sponsors have understood the "prudent person"(1) rule that they must follow as fiduciaries, and the personal liability they face for losses caused by a breach of that duty.(2)
Today, new regulations mandating full fee transparency, a potentially expanding definition of fiduciary duties and greater enforcement actions by the Department of Labor are ratcheting up the level of fiduciary risks for plan sponsors.
Through the innovative Retirement Plan Consulting Program (RPCP), plan professionals who work with LPL Financial can act as fiduciaries to your plan for investment selection, helping your plan committee manage many of these mounting pressures.
The Retirement Plan Consulting Program: a Flexible, Powerful Solution
The Retirement Plan Consulting Program is a fee-based consulting platform that allows qualified financial professionals to provide advice to plan sponsors using the LPL Financial Corporate RIA. Most important, it demonstrates that the financial professional is serving as a 3(21) ERISA fiduciary for investment selection(3), committed to acting solely in the best interests of the plan and its participants. These financial professionals are not compensated for the sale of a product-all of their compensation is agreed upon and paid directly by the plan sponsor client and/or out of plan assets. And finally, because the RPCP financial professional is disclosing services, fees and fiduciary status, it meets the Department of Labor 408(b)(2) disclosure requirements.
Three key Benefits for Plan Sponsors
Empowered by objective, truly independent fiduciary advice, your retirement plan committee will receive:
A Complete Array of Fiduciary and Non-Fiduciary Services
As an approved financial professional in the RPCP, your financial professional can provide value through an array of services including:
We are an approved LPL Retirement Plan Consulting Program (RPCP) offering co-fiduciary and non-fiduciary support as a 3(21) and 3(38) advisor.
Investment Advisor Representative will assist the Plan by acting as a liaison between the Plan and service providers, product sponsors and/or vendors. In such cases, IAR shall act only in accordance with instructions from the Client on investment or Plan administration matters and shall not exercise judgment or discretion.
Investment Advisor Representative will provide education, training, and/or guidance for the members of the Plan Committee with regard to plan features, retirement readiness matters, or duties and responsibilities of the Committee, including education with respect to fiduciary responsibilities.
Investment Advisor Representative will assist client in enrolling Plan participants in the Plan, including conducting an agreed upon number of enrollment meetings. As part of such meeting, IAR will provide participants with information about the Plan, which may include information on the benefits of Plan participation, the benefits of increasing Plan contributions, the impact of pre-retirement withdrawals on retirement income, the terms of the Plan and the operation of the Plan.
Investment Advisor Representative will assist with participant education, which may include preparation of education materials and/or conducting investment education seminars and meetings for Plan participants. Such meetings may be on a group or individual basis, and may include information about the investment options under the Plan (e.g., investment objectives, risk/return characteristics, and historical performance), investment concepts (e.g., diversification, asset classes, and risk and return), and how to determine investment time horizons and assess risk tolerance. Such meetings shall not include specific investment advice about investment options under the Plan as being appropriate for a particular participant, but may include use of education investment models.
Investment Advisor Representative will assist with the preparation, distribution and evaluation of Request for Proposals, finalist interviews, and conversion support.
Investment Advisor Representative will provide Client with comparisons of Plan data (e.g., regarding fees and services and participant enrollment and contributions) to data from the Plan's prior years and/or a benchmark group of similar plans.
Investment Advisor Representative will assist Client in identifying the fees and other costs borne by the Plan for, as specified by client, investment management, recordkeeping, participant education, participant communication and/or other services provided with respect to the Plan.
Helping You Meet Your Fiduciary Duties
1. ERISA sections 404(a)(1), 404(a)(1)(A), and 404(a)(a)(B)
2. ERISA section 409(a)
3. ERISA section 3(21)(A) provides that a person is a fiduciary with respect to an employee benefit plan to the extent that such a person, among other things, exercises any discretionary authority or control over the management of the plan or disposition of plan assets; renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan; or has any discretionary authority or discretionary responsibility in the administration of such plan.