Insights


What’s on the Agenda for Your Next Retirement Plan Due Diligence Meeting?

Another quarter has closed - and, for many plan sponsors, that means another quarterly due diligence meeting is just around the corner.

Let’s say you are the committee chair in charge of putting together the agenda for the meeting. What will it consist of? Chances are that it will include a thorough review of the investment adviser’s due diligence report, complete with wonderful graphs and charts about how each plan investment does or does not comply with various investment policy statement metrics and funds considered for watch/ replacement. Additionally, there might be an review on how COVID-19 is affecting the plan, a legal update, and/or a recap on administrative issues from human resources. Perhaps a recordkeeper or another service provider request for proposal (RFP) is being conducted, or will be conducted in the near future, so that may be an agenda item as well. Fiduciary training will also appear on the agenda on an annual basis or when there is a new committee member.

Now, there is nothing wrong with this type of agenda. It is fairly standard, and fiduciaries have been using topics such as these to fulfill, what they perceive to be, their duties for many years. However, in my opinion, there is an important item missing. When I look at an agenda like this, I see a plan sponsor who is treading water - they are doing what they need to do, but are they actually improving the plan?

“Best-in-class” plan sponsors have at least one action item on every due diligence meeting agenda that reflects something they are doing to make a good plan better. Does your plan have auto-enrollment? Have you increased the default percentage or added/increased auto-escalation? From model fee allocation/transparency, to financial wellness and participant engagement, there are many plan aspects to consider as part of a savvy agenda. If you don’t know where to start, your advisor should lead the way.

If this concept is completely new to you, begin with minor plan improvement challenges and use the momentum created by small successes to complete larger initiatives. And, who knows, you may be the award-winning plan sponsor of tomorrow!

Have you completed an initiative to improve your retirement plan lately? I’d love to hear from you on LinkedIn, Twitter or at info@cammackretirement.com.

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.

Investment products available through Cammack LaRhette Brokerage, Inc.
Investment advisory services available through Cammack LaRhette Advisors, LLC.
Both located at 100 William Street, Suite 215, Wellesley, MA 02481 | p 781-237-2291