Here are tips for how to shop for a new retirement plan vendor. It’s really important to recognize that you need to choose well so your participants are happy and so you’re happy administering the plan. After all, this is a benefit. And, since you’re responsible for handling other people’s money, this isn’t a decision to be taken lightly.

Department of Labor regulations, ERISA, and specifically section 408(b)(2), require that plan sponsors obtain fee disclosures for their plan and that all such fees be “reasonable” for the services provided. Unfortunately, retirement plan fees have become increasingly complex in how they are collected and the marketplace is ever changing! Understanding value is tough.

Let’s start this one off by asking, when was the last time you looked at the retirement plan marketplace to see what was new? Besides margins decreasing, vendors have been working diligently to stay competitive and offer new features and programs. Don’t get me wrong, there’s a lot of stuff that is craptastic, but occasionally there are insights or attributes that would be really helpful to your plan.

Stuff goes awry during transitions sometimes. A consultant can help you understand what’s normal, what’s not, and what to expect, so that you have a frame of reference. Much like planning and executing a wedding, there’s a big difference in how mishaps are handled and the bride’s (or her mother’s) interpretations of how bad the mishaps are.

So...what do you think is a successful retirement plan? Ever thought about it? Here are some ways to think in terms of defining your organization's plan's success. (If you haven't thought about it, click here for our white paper on the subject.)

Our guest blog comes from our pal Lisa Anne Thompson Taylor, from Taylor Strategic Partnerships, where she guides responsible philanthropy and improves non-profit board governance. If your board (or a board member) needs training, she's a certified governance trainer! She gives us the skinny on giving to charity:

No one likes being audited, but it's really important to your plan. Here are our tips on who to hire to audit your ERISA retirement plan and why. Who needs an audit? Check the DOL's FAQs here.

Is your 401k or 403b plan going to need an audit this year? The rules are a little goofy to explain. Only plans that the IRS considers to be "large" plans need to submit an independent auditor's report along with their Form 5500 filing. "Large" means 100 or more participants BUT there's the 80/120 Rule that says if the year prior you filed on the Short Form 5500 and you have under 120 participants, then you DON'T have to have an audit. Here's the DOL's Audit FAQs: http://www.dol.gov/ebsa/faqs/faq_auditwaiver.html

The IRS just announced that next year's 401k and 403b contribution limit is $18,000 with a $6,000 catchup!  Read the full story and get all the retirement plan related limits HERE.

The Form 5500 asks for total number of participants in a plan, but it's not calculated the way you think it would be. Let's talk about these in more detail and explore some things you can do to keep your plan lean and mean in the participant count.

Many organizations are eligible to have either a 401(k) or a 403(b) plan. So what's the difference? Which is better? The answer all depends on your organization's characteristics and the goals you have for the plan. Here is a brief overview of some of the main differences and a few questions that you should ask:

Every now and again we like to have guest bloggers talk about the nitty-gritty stuff Reading Rainbow style. ("You don't have to take MY word for it!")  We've got another guest blog that you should find helpful, especially if you're in the GovCon (Government Contracting, for those not in the know) world. Alan Luba of Human Resources Consultants LLC is weighing in here on some of the more common issues with benefits and pay. You can reach him at alanluba@verizon.net should you have more questions.

Every now and again we like to have guest bloggers talk about the nitty-gritty stuff Reading Rainbow style. ("You don't have to take MY word for it!") Here's Chris Oneal from Stones River Consulting giving you the skinny on why you're going to be asked to re-state and re-sign all of your plan documents in the next 18 months. --RP

1)        Have a sound reason for changing to a new provider. That reason could be: improved service, less administrative burden, better tools and resources for participants, more plan sponsor support services, more access to a broader range of investments, and so on. 

I meet with a lot of folks in the investment advisor and broker community. It never ceases to amaze me when they inquire how our practice is set up and how we manage to "make money" servicing retirement plans. Usually it's coming from a competitor who dabbles in our space citing the time they spend on it, or one who thinks they want to "get into the retirement plan business." I'll tell you how we do it and I'll tell you why you shouldn't hire a generalist to serve as your retirement plan's advisor.

A company requested that we submit a proposal for performing investment due diligence. They had searched for a new plan provider and wanted to compare the proposed investment lineup that the provider was suggesting against the investments in their current plan lineup to determine whether to switch. They were seeking proposals for this service from several advisors, I'm sure.

1)  Not monitoring providers on a regular basis. No matter what, you’re still to blame for oversight. Hiring a prudent expert or a vendor takes work away and shares responsibilities, but you will always maintain the responsibility to make sure they’re qualified and doing their job.

1)  Starting a retirement plan without knowing all the options. 401k, SIMPLEs, and SEPs, oh my! Each type of plan has strengths, weaknesses, and impacts your budget differently. Make sure you know and understand all of your options when selecting the plan type and long-term impact! Beware of payroll sales people who say "Would you like a 401k with that?" This is not McDonalds where you're adding fries to your combo meal.

I get asked a lot of retirement plan questions, and this was a doozy. Who's to blame when you can't find the records of contributions and earnings in a Roth and all you want to do is pull out what you contributed?

I'm totally blessed with awesome clients who walk their walk and talk their talk when it comes to their mission statements and creating fabulous workplaces. This past Sunday I got to hang out with one of them during their annual benefits fair. I say "benefits fair," but that sounds like a room full of booths with employees begrudgingly being ushered through to get a free stress ball and water bottle to make the HR manager happy. I normally despise these things because it's a bunch of standing around for hours on end hoping employees will show up. (I've considered dressing up in costume or having a karaoke machine to make it more fun amongst all the other things we do to make our booth attractive and fun.)