Service providers have access to employees’ information and can easily gain their trust. What do you know about the individuals servicing your employees and the financial products that they are promoting?
Source: The Effects of Conflicted Investment Advice on Retirement Savings, 2015, Council of Economic Advisors
Plan recordkeepers and other service providers include communication and education (C&E) plans as a part their proposals. However, employers are often unaware of the hidden structures and programs that undermine the plan. Principal Review provides employers with resources to more fully understand the hidden aspects of these C&E programs and give you the resources to help protect your plan and your employees.
The COI (Conflict of Interest) Plan Audit includes a review of provider(s) practices that affect your plan. We analyze:
Plan sponsors undertake a thorough RFP process. This work can be undermined by cryptic compensation and sales disclosures that leave employees at risk and vulnerable to high cost, non-approved investment products. Our COI Plan Audits help plan sponsors identify and mitigate these risks.
Employers are (justifiably) concerned about fulfilling the fiduciary responsibilities of managing and administering their plans. To deal with these risks, employers often hire plan consultants to serve as co-fiduciaries to help manage services provided directly to plans.
However, plan vendors can engage in a variety of sales practices that can create fiduciary risks not addressed by plan consultants. These practices steer employees to higher priced services and products both inside and outside of the employer-sponsored plan and capitalize on the access to employees and the employees’ trust in plan “representatives.”
Principal Review focuses on the activities that leverage plan vendors’ access to your employees that create additional fiduciary risk for employers. We serve as a co-fiduciary alongside your named fiduciary and plan consultant. We provide transactional and investment suitability oversight that helps plan participants make informed decisions at the “distributable event”—when they are most vulnerable to these sales efforts. In serving as a fiduciary to the plan, Principal Review helps ensure that plan participants have received clear explanations of their options by providing expertise both via on-line resources and tools and through our registered investment advisors.
Our service is designed to be non-conflicted and unbiased. Our service team members are paid exclusively through a salary. Period. Their incentives to earn future compensation are not tied to the sale, retention, recommendation or transactions undertaken by employees in the plan. Our fee structure is straightforward and fully disclosed, there are no non-plan related sales structures or incentives attached.
We partner with you to ensure every employee has access to the unbiased, non-conflicted support necessary to make informed, educated decisions with their hard earned retirement savings.