PLANADVISER - September/October 2020 - 27

PLANADVISER: How has the importance of fiduciary-level
services evolved for your clients and practice, say over
the last decade? Would you offer examples, please?
Ellen
Lander: Providing fiduciary consulting services
has become a huge part of our practice's work with our
clients. Lawsuits targeting 401(k) plans, and now notfor-profit
ERISA 403(b) plans, have become commonplace,
and we don't see any evidence of it slowing down.
Our clients depend on us to provide a procedural and
substantive due diligence framework. They expect us to
provide objective, well-researched information that can
assist them in making fully informed decisions that are
considered to be in the best interest of their plan's participants.
And, as we know, that's not a one-time discussion.
Decisions made in the past must be monitored and re-evaluated
to ensure they remain prudent in light of changing
demographics and current circumstances.
Given that, our fiduciary-level services include ongoing
fiduciary training, assisting our clients with the writing of
their plan committee minutes and the ongoing reassessment
of decisions made in the past.
Against a backdrop of, not just increased litigation and
DOL focus, but of ongoing changes in our industry, examples
of reassessments would be: re-evaluating the fund shareclasses
we've selected when money managers introduce
new shares or when revenue-sharing arrangements change;
reconsidering the methodology in place for the allocation of
fees, as plan assets and participant counts change, over time;
and helping clients maintain and oversee their plan expense
reimbursement accounts due to growth in plan assets.
Michael Francis: We find plan sponsors are more aware of
their fiduciary liabilities. We believe this is primarily the
result of dozens of " successful " lawsuits, which have resulted
in hundreds of millions of dollars-worth of settlement checks
written by plan sponsors to their plans over the past 10 years.
ERISA became law nearly 50 years ago to protect the hardearned
retirement assets of American workers from individuals
who, either due to a lack of expertise or conflicts of
interest, are prone to mismanage these assets. Sponsors need
help living up to the standard of care set by ERISA. Smart
sponsors rely on an independent expert to help them design,
implement and monitor a process of ERISA compliance. It
starts with training; graduates to outlining a process for the
selection, oversight and de-selection of service providers and
investment managers; and concludes with an audit of the
process. The audit should include an evaluation of plan utilization,
documentation of ERISA compliance, and verification
of the reasonableness of all plan fees. The law does not expect
omniscience or perfection, just a prudent process. Our clients
appreciate the disciplined process we help them implement,
and they recognize that it truly adds value to their plan.
Doug Prince: The fiduciary-level experience has evolved
over the last 10 years by adding more due diligence on fees
and expenses, and reviewing share classes, cybersecurity
and internal controls. We have clients moving from 3(21)
fiduciary adviser to a 3(38) investment manager so they can
focus on participant outcomes and reduce the amount of
time spent on investment analytics. The major shift is from
reviewing past items where there's no control to becoming
more proactive and trying to change the items that can
really make a difference in the future. We've been working
more closely with health benefits consultants and compensation
consultants to change the tendency to look at each of
these in a silo to how to consider total compensation.
For example, we had a client where we worked with its
health care consultant to find money to increase retirement
benefits. With another client, we found ways to keep the
same match in the plan, but switch the plan from being a
traditional safe harbor plan to a QACA [qualified automatic
contribution arrangement] to utilize forfeitures, to fund a
financial wellness program for employees.
PA: Is compliance support still a major ask from clients?
Has demand grown, for instance, due to legal suits and
more DOL rules and guidance?
Lander: It is a major ask, and it has grown for the reasons
stated. Further, many of our clients are controlled groups
of corporations, with many in full-on acquisition mode. So,
it's not just supporting compliance for one plan; it's ensuring
that we're providing guidance with a far broader scope and
in consideration of the other employers' plans and employee
groups. Examples include conducting due diligence for the
retirement plans maintained by a company our client may
have acquired; consistency of plan design among the various
2019 PLANSPONSOR Multi-Office
Retirement Adviser of the Year
Ellen Lander, principal of Renaissance Benefit
Advisors Group, LLC, in New York City, founded
the firm in 2008-her vision, to offers the
same services to each plan sponsor client
regardless of its size. The firm plans to maintain
its identity as a specialist boutique.
2018 PLANSPONSOR Large Team
Retirement Adviser of the Year
Michael Francis, president, chief investment
officer at Francis Investment Counsel LLC in
Brookfield, Wisconsin, built his firm to be free of
potential conflicts; so, it focuses on consulting
to qualified plans, plus gives sales-free financial
advice and coaching to the plans' participants.
2010 PLANSPONSOR Team
Retirement Adviser of the Year
Doug Prince is CEO of ProCourse Fiduciary
Advisors, which was called The Prince Group
of Stifel Nicolaus until 2012. Realizing it could
be more innovative across one line of business,
the company opted to focus 100% on
retirement. It is 100% fee-based.
planadviser.com September-October 2020 | 27
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PLANADVISER - September/October 2020

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