Comprehensive Due Diligence Services
A plan sponsor should review fiduciary practices for many reasons. Legal and practical scrutiny of today's plan sponsors and investment managers is increasing. Volatility in the markets also presents extreme challenges for participants and plan sponsors. A due diligence review provides plan sponsors with the best defense against potential litigation, by demonstrating that they are prudently managing the retirement plan and the plan assets.
At Cammack LaRhette, we believe that due diligence needs to go far beyond investment analytics. The entire process must help a plan sponsor understand the interconnected world of the vendor, the participant, and the organization, in order to maximize the effectiveness of all aspects of a retirement program. We encourage our clients to perform a comprehensive due diligence review of their programs on a periodic basis. This process integrates plan design, investment due diligence, plan fee reviews, industry trends, and participant communication and education. Established properly, the comprehensive due diligence process also supports the program and plan sponsor through focused compliance, technical support and vendor management.
To assist in establishing a comprehensive due diligence process, we start with an initial needs assessment of your plan, whereby we:
- Review or draft an investment policy statement (IPS)
- Examine the plan documents and recent investment reports
- Assess the organization's level of fiduciary knowledge
- Perform a qualitative and quantitative investment and fee review
- Review asset classes for duplication or omission, and assess the fund line up for participant diversification and suitability of funds offered
- Help establish criteria for monitoring/selecting funds, controlling expenses and plan administration
- Recommend any appropriate investment fund changes and assist with any transition fund mapping
- Implement the IPS to align competitive investment options and establish a robust service offering
We formalize the ongoing comprehensive due diligence process by finalizing the IPS, explaining the ongoing duties of fiduciaries, and documenting the necessary procedures.
In addition, we:
- Perform a periodic analysis of the plan's investment performance, expenses and asset allocation
- Maintain investment analysis according to the investment policy statement (IPS) criteria
- Introduce best practices, monitoring new legislation and industry trends
- Conduct top quality compliance research, support and troubleshooting
- Provide ongoing vendor troubleshooting and support on day-to-day plan operations
- Review plan design, monitor performance and provide general consulting
- Analyze participation rates to implement appropriate communication and education programs
- Provide comprehensive telephone and email support.
Our comprehensive due diligence review process helps protect your organization and individual plan fiduciaries from legal scrutiny, shields against today's extensive legislative activity increased government audits, and conforms to a changing provider landscape. Equally important, the process helps to maximize plan effectiveness for participants.
Defined Contribution Plan ServicesOur comprehensive consulting services support plan sponsors in their fiduciary responsibilities and in their day-to-day administration of the plan:
- Comprehensive fiduciary due diligence services - Integrated approach to fiduciary monitoring of all aspects of a program, encompassing investments, administration, education and communication
- Investment selection, monitoring, and RIA services * - All-inclusive investment analysis and deconstruction of fee structures, with co-fiduciary services through registered investment advisors
- Compliance - Wide ranging compliance research, technical guidance and assistance
- Vendor support - Ongoing vendor troubleshooting and support
- Employee communication and education - Group and individual education designed to empower employees in decision making and to boost participation and contribution rates
- Request for proposal services - Extensive vendor selection services for record keepers, outsourcing agents and bundled providers
- General consulting - Monitoring of new legislation, industry trends, and extensive telephone and email support on day-to-day plan operations
Extensive actuarial services supporting your defined benefit and/or post-retirement benefit programs:
- Actuarial valuations - Actuarial valuations supporting annual funding requirements and expense determinations for defined benefit and post-retirement benefit plans
- Consulting services (ongoing support) - Benefit calculations, employee statements, assistance with audit requests and support on day-to-day plan administrative issues, including analysis of legislation
- Actuarial services (special projects) - Analysis of plan design changes, plan termination support and annuity placements
- Consulting services (special projects) - Asset liability studies, strategic benefit audits, data audits
- Asset liability studies - Forecasting interplay of plan assets and liabilities
- Defined benefit to defined contribution plan migration studies - Assistance with transition of retirement program
- Communication services - Participant statements, summary plan descriptions and other specialized communications, in hard copy or electronic form
- Full compliance services - Signature-ready government filings and related participant communications and nondiscrimination testing
- Non-qualified plan services - Actuarial, administrative and communications support for funded or unfunded supplemental plans
We offer a full range of services for non-qualified DB and DC plans. Support for plan design financing options includes book reserve, Rabbi trust or cash payments:
- Funding required to meet benefits obligations (book reserve, Rabbi trust or cash payments)
- Cash flow analysis, FAS impact and future liability calculations
- Protection against funding contingencies
- Annual review of the benefits provided under the program, versus targeted benefit levels
- Education for participants on tax information, eligibility and entry, retirement goal setting and plan documents
