PLANADVISER - Summer 2023 - 15

At every meeting, RBA leads a discussion
about investment due diligence and gives a
quick update on basic plan metrics, such as
the current participation rate. " Each quarter
we also take a deep dive on a topic, and it's
a different topic every quarter, " Lander says.
Those four deep dives are: a demographic
breakdown of participation and deferral
rates, plus a discussion of trends; investment
menu options, including participant allocations
and transfer activity between investments;
the strategy of the plan's target-date
funds and whether the plan still has the best
target-date family for its participant base;
and fee benchmarking.
Asked how she and her team keep the committee on
" Being able to provide
real-life, tangible examples
of similar companies is what
makes clients comfortable
with moving forward. "
topic at a meeting, Lander jokes, " Oh, we're ballsy. " More
seriously, she adds, " Our clients get it: They understand
and value governance. They understand that we follow a
protocol, and it's the same every quarter. For new clients,
we talk about the process we follow and why we follow it. "
2) Effectively introduce potential changes.
How does an adviser suggest that a committee consider
making a significant plan design or investment change? " For
us, it's supplying the data that supports making the change, "
Peluse says. " Even more importantly, we talk about work
we've done with similar clients, and the results. Giving them
industry data is relevant to getting the discussion started,
and then giving them examples of similar clients moves the
discussion forward. Being able to provide real-life, tangible
examples of similar companies
is what makes clients
comfortable with moving forward. "
Brea Dantin, retirement plan adviser and chief operating
officer at ProCourse Fiduciary Advisors in Carmel, Indiana,
assesses each committee's overall
tolerance for change
before launching discussion about specific revisions. " We
also want to understand their larger corporate initiatives.
We want to make sure we're not operating in a retirement
'bubble' and we're looking at what is going on holistically
with the employer, " she says. " You can talk about, 'What are
your biggest corporate initiatives for the coming year and
what do you think will be the biggest hurdles you'll face?'
This is a conversation that isn't about looking in the rearview
mirror: It's about looking through the windshield. "
Dantin mentions a couple of the common initial concerns
that committees have about making a major change. " A big
one is, if the company has a workforce with a low average
hourly wage, they're often concerned about plan design
changes such as starting automatic enrollment. They ask,
'How are our participants going to react?' " she says. " When
you can give the sponsor real-life examples of companies in
their area that had 98% acceptance of automatic enrollment
and have a lower average hourly wage, that really helps.
And you have to be patient as they consider it. "
Also, some clients are very sensitive to potential problems
with compliance and litigation, Dantin says. " Even if
you talk to them about something you think will be a huge
benefit to their employees, they sometimes get twisted up
in the possibility of a participant lawsuit, " she says. " If that
happens, we want to make sure they understand the difference
between settlor functions [such as plan design decisions]
and fiduciary functions, and what the risks are of
making this change. We'll point them toward the contacts
they have that can help them understand; maybe that's their
outside ERISA attorney, or their fiduciary liability insurance
broker. You want to give them time and space to reach out
to others and gather information. Sometimes those conversations
turn the tide for a committee concerned about
making a change. "
3) Encourage balanced debate.
One or two committee members with strong feelings may
try to dominate the discussion about making a change.
" You're always going to have a dominant individual in that
group, " Peluse says. " Our job as advisers really comes down
to educating the committee. We talk about, here's what to
expect if you do this and the benefits and drawbacks. We stay
away from trying to drive the committee toward acting one
way or the other. "
Lander says RBA does substantial fiduciary training and
talks to committees about why dominating personalities
are not helpful. Discussions need to be well rounded and
from multiple viewpoints. " If you set the expectations-and
doing that is your responsibility as the adviser-and you
have knowledgeable committee members, then it's easy to
have discussion and debate at meetings, " she says. " Dare I
say, it's also fun. Hearing different viewpoints is very interesting.
And seeing a committee ultimately agree on the
right answer is gratifying. " -Judy Ward
Awards & Innovation | Summer 2023 | planadviser.com 15
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PLANADVISER - Summer 2023

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