The Dubie Group at Morgan Stanley Smith Barney. The Services Available for Your Retirement Plan

Transcription

1 The Dubie Group at Morgan Stanley Smith Barney The Services Available for Your Retirement Plan

2 Swift Westheimer Street, 4th Road, Floor, Suite P.O Box 1095 Houston, Burlington, TX VT / / Main // Toll-Free // fax john.b.mott@smithbarney.com luci.cruz@smithbarney.com lucia.zamarripa@smithbarney.com

3 The Dubie Group at Morgan Stanley Smith Barney According to the Employee Retirement Income Security Act of 1974 (ERISA), fiduciaries of qualified retirement plans must, among other things, carry out their duties prudently and act in the best interest of plan participants. Fiduciary responsibilities can include: choosing a provider to administer the plan, selecting an appropriate menu of investments and monitoring such providers and investments on an ongoing basis. It has been said that ERISA s prudence standard is one of the highest duties known to the law. Fulfillment of fiduciary duties will generally be measured by the steps a fiduciary takes to meet its obligations and whether a fiduciary has made informed and reasoned decisions. In fact, the Department of Labor and the courts have taken the position that fiduciaries without the knowledge or experience to make sound decisions have a duty to seek expert assistance. For example, when making investment decisions, a fiduciary who lacks investment experience may need to hire an investment specialist. For many plan sponsors, investment and other fiduciary responsibilities can seem overwhelming. That s where we can help. We can provide guidance and information to help you meet your fiduciary responsibilities. We know you re busy managing your business and that you may not have the experience or the time to do the necessary research to make the right decisions. We have the tools and knowledge to help you make informed investment decisions as well as address your other plan responsibilities. You can feel confident knowing that Morgan Stanley Smith Barney is committed to putting our resources and experience to work for your retirement plan. The dubie Group 3

4 Experience and Guidance That Make a Difference evaluation evaluation investment management Needs Assessment Benchmarking Provider Search Investment Policy Statement Investment Selection Investment Monitoring enrollment Meetings and Participant Education Strategic Enhancements ongoing Education Seminars Issue Resolution Fiduciary Audit File plan participation plan management By offering your employees a retirement plan, you are providing them with the opportunity to save for a secure retirement. You play a fundamental role in managing this essential employee benefit and it is important that you understand your obligations as the plan s fiduciary. Needs Assessment To derive the maximum benefit from your retirement plan, it is important to select the most appropriate features and services for your business. The Dubie Group can offer valuable guidance by identifying and evaluating your company s needs. examine the history of your business and goals for your plan Review your retirement plan objectives analyze the demographics and investment behavior of your employees Benchmarking In order to determine how the retirement plan you are offering your employees compares with other plans in the marketplace, benchmarking is critical. Benchmarking offers a comprehensive and detailed way to evaluate a plan s design, features and fees. The Dubie Group s benchmarking capabilities help to ensure that you are providing a competitive plan. Demonstrate that a documented process has been established Provide plan fiduciaries with information needed to make responsible decisions Help monitor the overall menu of funds, identify gaps in the current fund menu and show potential solutions enable access to a number of tools that allow comparison to other plans of similar size or in a similar industry open up opportunities to discuss areas for improvement as it relates to plan fees and features Provider Search There are a variety of factors to consider when evaluating the capabilities of providers, including recordkeeping, communications, investment flexibility, compliance, fees and services. The Dubie Group can work with you to identify the provider that best suits your company s needs. Solicit and evaluate proposals from a variety of providers Invite select providers to present their programs assist you in the review of proposals to ensure the program chosen is an effective strategy 4 Morgan Stanley Smith Barney

5 investment management Investment Policy Statement An investment policy statement clearly defines plan goals and investment parameters and provides the plan investment committee with guidelines for investment management decisions. It is also an effective way to ensure your investments are meeting your plan objectives on an ongoing basis. The Dubie Group can help you develop this important document. Provide a sample investment policy statement Help identify specific goals assist in selecting a broad range of asset classes to be represented in your retirement plan Identify investment parameters to help measure success establish a process to periodically review plan investments against stated goals Investment Selection The Dubie Group has the ability to help you select the appropriate range of potential investment options to meet your plan s specific needs. educate on general investment concepts such as diversification, risk, asset allocation and historical rates of return Identify multiple investments within each asset class from the provider s fund universe that are consistent with your plan s investment policy statement Help ensure that the funds meet the requirements of Section 404(c) of ERISA Investment Monitoring While selecting appropriate investments is critical to the success of your plan, monitoring each investment option is just as important. The criteria you use to monitor your investment options should be consistent with the goals outlined in your investment policy statement. The Dubie Group can provide the tools and guidance to help you maintain an appropriate range of investment options within your plan. review periodic reports to help you monitor the plan s investment options Conduct searches to replace investment options that are no longer consistent with the plan s investment policy statement Provide investment education and research to encourage sound decision-making Issue Resolution plan management While the ongoing maintenance of your plan is important, we understand that it is not your only responsibility. The Dubie Group can help you resolve issues that arise in connection with the day-to-day activity of your plan. Interface with your plan provider to address your questions Seek corrective action for any deficiencies in service Provide ongoing support Fiduciary Audit File One of the best ways to demonstrate compliance with the applicable standards under ERISA is through adequate written documentation. This can be compelling evidence of adherence to a prudent process and an effective argument against allegations of a fiduciary breach. The Dubie Group can help you establish a fiduciary audit file. Organize key plan records Help identify areas requiring further development Demonstrate that policies and procedures were established Document adherence to those policies and procedures plan participation Enrollment Meetings and Participant Education Participation is vital to the success of any plan and a strong participant education program contributes to this success. Now more than ever, investors are looking for assistance in reaching their financial goals. The Dubie Group can help your employees make informed decisions with respect to the features of the plan and basic retirement planning concepts. Explain your plan s features review the importance of diversification and other asset allocation strategies reinforce the benefits of participation and increasing contributions encourage the use of retirement planning strategies Strategic Enhancements While a good education program is important, it may not always help to ensure a successful plan. If you are concerned about low participation rates, low deferral rates and whether your employees are properly diversified, The Dubie Group can help introduce strategies with the potential to improve the health of your plan. review plan demographics and asset allocation to identify areas for improvement recommend appropriate strategies including automatic enrollment, automatic deferral increases and default investment options Help you monitor the impact of the strategies you choose to implement Ongoing Education Seminars One of the best ways to encourage your employees to maximize the benefit of their retirement plan is through in-person meetings and seminars. The Dubie Group can coordinate continuing education for your existing employees and enrollment meetings for new employees. reinforce concepts presented in initial enrollment meetings offer programs to further employees understanding of financial markets and personal financial planning strategies assist retiring employees with retirement plan distribution strategies The dubie Group 5

6 Meet The Professionals Left to right: Christopher D. Dubie, Julie D. Aumand, Julie C. Braun 6 Morgan Stanley Smith Barney

7 Our experienced team of retirement professionals can help translate your organization s retirement plan goals and objectives into actionable strategies and solutions. We believe that working as a team not only provides you with access to a broad array of solutions, but also helps to ensure that you benefit from the highest levels of service. While we bring complementary skills and perspectives to our clients, we also share a commitment to responding to your retirement plan needs promptly, professionally and thoroughly. Our goal is to earn your confidence not only through the quality of retirement plan solutions we present to you, but also the excellence with which we deliver them.

8 Christopher D. Dubie, CRPS Corporate Client Group Director Senior Vice President Financial Advisor Industry Experience: Over 15 Years Christopher D. Dubie is Senior Vice President, Financial Advisor, Financial Planning Specialist, Corporate Client Group Director, and Chartered Retirement Plans Specialist SM (CRPS ) with 15 years of corporate retirement plan experience at Morgan Stanley Smith Barney. Christopher is a member of the Morgan Stanley Smith Barney K-Group and sits on their executive committee. He focuses on assisting plan sponsors with their corporate retirement plans and corporate executives with their financial planning and investment management needs. His clients include corporations and non-profits, corporate executives, high net worth individuals and foundations. In (k) Wire named Christopher one of the 300 most influential individuals in the corporate retirement plan industry and he was a guest speaker at the 2010 PlanSponsor Magazine annual conference.* Also in 2010 and 2011 Christopher was named by PlanAdvisor Magazine as one of the top 100 retirement plan advisors, specifically for his focus on 403(b) plans**. In 2009, he received The ASPPA 401(k) Leadership Award for excellence in the 401(k) industry by the American Society of Pension Professionals and Actuaries***. ASPPA is a national organization of more than 6,500 retirement plan and benefits professionals that serves as the educator, voice, and advocate for the employerbased retirement system. Christopher.D.Dubie@mssb.com Julie C. Braun, CRPS Financial Advisor Financial Planning Specialist Industry Experience: Over 5 Years Julie C. Braun is a Financial Advisor, Financial Planning Specialist, Chartered Retirement Plans SpecialistSM (CRPS ), and B.S. in Business Administration from Saint Michaels College. Julie joined Morgan Stanley Smith Barney in 2007 after working locally with NEB Resources in Shelburne Vermont. Julie provides support for companies on 401(k) administration, education, and works primarily in the area of helping to mitigate fiduciary liability. Julie is also responsible for retirement plan benchmarking studies. In 2010 and 2011, Julie was named by PlanAdvisor Magazine as one of the top 100 retirement plan advisors, specifically for her focus on 403(b) plans**. Julie.Braun@mssb.com 8 Morgan Stanley SMith Barney

9 Julie D. Aumand Senior Registered Associate Industry Experience: Over 16 Years Julie D. Aumand is a Registered Associate. Julie has been with Morgan Stanley Smith Barney for 16 years. She is responsible for the coordination of day to day communication and general plan level assistance. She works closely with plan sponsors, participants and vendors. She is also responsible for coordination with third party administrators and outside auditors who work for our clients. As a registered associate Julie is an added resource in answering questions for participants who call into our team. Julie.Aumand@mssb.com

10 Working Together We re dedicated to making your retirement plan a success and, at the same time, helping you meet your fiduciary responsibilities. To deliver the retirement plan you and your employees deserve, contact The Dubie Group today. Upon request, The Dubie Group can assist with any of the following services to your plan. evaluation Needs Assessment Benchmarking Provider Search investment management Investment Policy Statement Investment Selection Investment Monitoring plan management Issue Resolution Fiduciary Audit File plan participation Enrollment Meetings and Participant Education Strategic Enhancements Ongoing Education Seminars additional services Investment and Benefit Consulting Defined Contribution Plans Defined Benefit Plans IRA Rollover/Distribution Education and Assistance Non-Qualified Deferred Compensation Plans Stock Plan Services 10 Morgan Stanley Smith Barney

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12 *Source: The 401kWire s Most Influential DC Advisors, February as identified by 401kWire using quantitative criteria selected from a pool of over 3000 nominations from the industry and the 401kWire s editorial staff. The list of the 300 Most Influential DC Advisors was selected from more than 120,000 reader votes as well as from input from last year s Top 40 Advisors and from distributors working with the advisors. Quantitative factors include but are not limited to, total assets, production, average account size, years in the business and other statistics about the advisors practices gathered directly from the nominees. Investment performance is not a criterion. The rating may not be representative of any one client s experience and is not indicative of the Financial Advisor s future performance. Neither Morgan Stanley Smith Barney nor its Financial Advisors pay a fee to 401kWire in exchange for the rating. **Source: Retirement Plan Adviser and Adviser Team of the Year, February 2010 & 2011 as identified by Plan Sponsor/Plan Adviser Magazines, bases its rankings on quantitative and qualitative criteria. With over 300 nominations and 78 teams and 49 individuals selected for recognition in 2007, advisors and teams are quantitatively ranked based on criteria such as assets under management, number of participants, years of experience, types of retirement plans used, and more. Advisors are judged by a panel comprised of editorial staff, previous honorees, and external retirement industry experts. Additional measures include interviews with the nominees. For more information on ranking methodology, go to The rating may not be representative of any one client s experience because it reflects a sample of all of the experiences of the Financial Advisor s clients. The rating is not indicative of the Financial Advisor s future performance. Neither Morgan Stanley Smith Barney nor its Financial Advisors pay a fee to Plan Sponsor / Plan Adviser in exchange for the rating. ***Source: ASPPA s ASPPA 401(k) Leadership Award, June 2009, is designed to acknowledge a specific accomplishment and/or contribution by an individual or group of individuals within the 401(k) industry. This Award, sponsored by Morningstar, recognizes leadership, innovation and significant influence within the retirement industry targeting the sales, marketing and establishment of 401(k) plans. Firms review and approve nominations of individuals who match the ASPPA award criteria. Individuals are judged based on qualitative information collected from the nomination form, and potentially from interviews with the Award Committee. Finalists are entitled to receive paid airfare, conference registration, and three nights hotel accommodations to The ASPPA 401(k) SUMMIT For more information on the award, go to The award is not indicative of the Financial Advisor s future performance. Neither Smith Barney nor its Financial Advisors pay a fee to ASPPA in exchange for the award. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney Financial Advisors do not provide tax or legal advice and are not fiduciaries (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise agreed to in writing by Morgan Stanley Smith Barney. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their tax or legal advisors before establishing a retirement plan and to understand the tax, ERISA and related consequences of any investments made under such plan Morgan Stanley Smith Barney LLC. Member SIPC PS /12