If you have questions about your organization’s retirement plans, look no further!

At DSL Financial Services, we strive to help businesses create a systematic approach to retirement plan management while working to reduce the fiduciary risks and complexities associated with managing the operational elements and promoting participant education to foster long-term financial wellness for your participants.

Retirement plans can be a powerful tool to nurture future financial independence. It is no secret organizations that offer strong retirement plan options help to attract and retain much-desired talent.

Plan Sponsor Services:

Review the current 401(k) plan design and documentation process
A company will want to review their current 401(k) plan design and documentation process to ensure:

• Cost efficiency (reducing or eliminating overpaying; identifying and bypassing hidden fees, and recognizing transparent pricing)

• Certifying high-quality customer service, such as user-friendly and more advanced technology, elevated customer care, and experienced payroll integration management which helps to limit difficulties processing transactions such as making contributions, taking withdrawals, preventing errors, and maintaining a flexible plan design.

• Employee needs are recognized including increasing employee participation and careful management of their individualized wants and goals.

• Fiduciary responsibility by acting in the best interest of their client through transparent communication, actively listening to participant concerns, and establishing controls to safeguard personal data.

Assist in the preparation and review of an Investment Policy Statement (IPS)
An investment policy statement is a document that outlines the rules and instructions governing asset allocation in a client’s portfolio.

Having a well-prepared IPS is important because it is often used by financial professionals to design an investment plan with a client. It may be used to identify target allocation and explore deviations of sub-asset classes and how they could impact your overall strategy. They help to survey an investor’s objectives and how they could perform along a specific time horizon.

Review and benchmark investment fund line-up
Often seen in 401(k) plans, an investment fund line-up is a selection of investment options available to participants that are generally actively managed by investment professionals who choose the securities and manage the funds. Fund lineups typically are a mix of stocks, bonds, and international investments offering diversification based on risk tolerance.

Market benchmarks not only provide a snapshot of the health of the market, but they also offer investors the opportunity to compare the performance of their investments and overall portfolio against industry metrics. They can be used to analyze risk, and allocation methodology, and help to create or modify long-term strategies. Examples of common benchmarks are the S&P 500 index used as the standard to measure equities, and U.S. Treasuries used for measuring bond risk and returns.

Assist in reviewing all fees and expenses to your plan
Regularly reviewing all fees and expenses is critical to help lower unnecessary costs. Over time hidden fees may be added and increased expenses could become a financial burden, but if you are aware of this you can take control of your finances, and work with a financial professional to eliminate extra charges.

Provide 3(21) and 3(38) Investment Fiduciary Services
In the context of 401(k) plans, 3(21) and 3(38) fiduciaries encompass different levels of responsibility.

• A 3(21) fiduciary can offer investment advice and recommendations however, they can’t make investment decisions without the plan sponsor’s approval. Any liability will fall back on the plan sponsor.
• A 3(38) fiduciary has the authority and responsibility to manage the plan’s investments and make investment decisions on behalf of the plan sponsor. Liability that falls back on the plan sponsor depends on the percentage of responsibilities that were given under the control of the 3(38) fiduciary. A financial professional can help assess what kind of burden the plan sponsor may be liable for.
  

Provide quarterly monitoring and documentation for fund lineup
It is essential to monitor and document (using a spreadsheet or other software) a fund lineup quarterly to ensure you are where you want to be. Identifying or creating a key performance indicator (KPI) tracking system helps investors and financial professionals compare how the fund performs against industry averages, benchmarks, and its goals.

Popular performance indicators that are used include:

• Expense ratios – Determining the cost to manage the fund.
• Return on investment (ROI) – Assessing the overall return of each fund and the lineup as a whole.
• Liquidity – The ability for which each fund can be converted into cash quickly and efficiently.
• Risk metrics management – Evaluate the risk profile of the lineup and each fund including the Standard Deviation Ratio (comparing the short-term and long-term volatility of a fund), Alpha Ratio (fund’s performance exceeding a benchmark, after adjusting for risk and market fluctuations), Beta Ratio (historical measure of a fund’s sensitivity to market movements), Sharpe ratio (excess returns per unit of increase in risk), and Sortino ratio (downside risk).
• Standard benchmark indices – A way to gauge the performance of investment funds (S&P 500, Nasdaq Composite, Dow Jones Industrial Average, and Russell US indexes).

Provide ongoing education to participants
It is critical that participants have access to ongoing educational material and that they are encouraged to explore these learning opportunities because the world, market, types of available retirement options, and how they are regulated, as well as internal and external changes affecting your company, can get confusing very quickly.

Provide annual 401(k) plan benchmarking
It is helpful to review and evaluate your company’s retirement plan, assessing carefully what you are offering to your employees and determining if it is satisfactory or potentially needs updating.

Conduct Semi-Annual or Annual Trustee meetings
Semi-annual and annual trustee meetings are crucial for confirming the responsible management and administration of fund lineups. The meetings can be used to discuss financial performance, address investment strategy modifications, legal and regulatory compliance, and other important financial decisions.

Let us help you grow your business and keep those talented employees happy 

Your employees’ retirement plan is their future and their effort day in and day out, is yours. Designing a well-structured retirement plan is complex but it isn’t impossible. Our years of experience and industry knowledge provide us with a firm foundation for which to build your business retirement plan to help your employees save for the future and also provide benefits for your business’s growth and preservation. These include tax-deductible employer contributions, tax-free asset growth within the plan, flexible plan options, potential tax credits, and other benefits for starting a plan helping lower costs, and making your company attractive to the smartest and most highly skilled employees that help drive business results.