PLANADVISER - March/April 2019 - 43

Two years ago, Shepherd Financial started incorporating
training modules it developed into each of its clients'
committee meetings, and it conducts this training at least
annually, reviewing one module-each series consists
of four-per meeting. The modules each last about 15
minutes, and how quickly a committee completes a series
depends on whether it meets quarterly, semi-annually or
annually, says Steve Wylam, a partner at the advisory firm,
in Carmel, Indiana.
Itzoe believes that, at a minimum, training should be
done for the whole committee when a new client comes
on board and for any new members who subsequently join
the committee. " I also think there is a case to be made that
fiduciary training should be provided on an annual basis, "
he says. " The responsibility is such a significant one, given
the amount of money that committee members are responsible
to oversee. The reality is that the vast majority of
employees' retirement plan experience is going to depend
on a small group of people who have to make all the key
decisions on the plan. "
Core Topics
RBG provides training annually, and the content varies
depending on the committee. " The general framework is
the same, but if the committee is the same as a year ago, we
take some things out [such as the history of the Employee
Retirement Income Security Act (ERISA)] because they don't
want to hear it again, " Franchimone says. RBG does most of
the training via webinar, but every year it also hosts one or
two group training sessions in the San Diego area, which
committee members from multiple clients attend. And,
for larger clients-i.e., those with $500 million in assets
under management (AUM) and up-the advisory firm can
do on-site, customized training, sometimes leading it in
conjunction with ERISA counsel.
When it trains committees at new clients, RBG covers 10
main topics. These include: an ERISA overview; an explanation
of fiduciary status and all of the fiduciary duties of
the committee and individuals on it; what is involved in
a prudent process; what potential fiduciary liability the
organization and individual committee members have;
plan management and plan documents; how to assess
and monitor investments; plan fees; vendor selection and
management; and hot topics such as recent lawsuits. That
training typically runs about 90 minutes, although for larger
plans it can last up to several hours.
For its training, Shepherd Financial has developed four
modules. The topics of these are plan governance, plan
administration, investments, and fees and expenses. " Our
fiduciary training series provides a solid framework for
those categories, " Wylam explains. " In plan governance,
we clarify, 'Who is a fiduciary?' The plan administration
module talks about operational issues such as delinquent
contributions, while the investment module includes
monitoring funds with a consistent, documented process.
Our expenses module discusses costs for investments,
planadviser.com March-April 2019 | 43
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PLANADVISER - March/April 2019

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