An introduction to our RETIREMENT PLAN CONSULTING SERVICES

Transcription

1 An introduction to our RETIREMENT PLAN CONSULTING SERVICES

2 OUR WHY We are determined to help create a significant, positive impact on the retirement outcomes of every American worker within our reach. To achieve this, WE BELIEVE IN: PROMOTING strong savings habits among all employees, with a 10% minimum lifetime savings rate ENCOURAGING broader coverage & increased participation of employees under workplace savings programs CREATING simplicity in the structure and administration of retirement plans, with an emphasis on employee outcomes and retirement readiness MAINTAINING a robust fiduciary process in order to protect employers and foster a best-of-class retirement plan for employees PROVIDING education and advice that is free of any conflicts-of-interest ENSURING transparency of all fees

3 WHO WE ARE Summit Group of Virginia LLP Full-service financial advisory firm, providing individual wealth management, group insurance benefits, executive benefits and corporate retirement plan consulting Member of the Retirement Plan Advisory Group (RPAG), an independent alliance of retirement plan-focused advisors across the country, providing Summit Group and our clients with the tools and technology of a national consulting practice representing over 21,000 plans and $86 billion in plan assets Our retirement plan consulting practice is structured as a boutique, service-oriented operation, focused on providing employers and plan participants with a true advocate We are NOT a product vendor or third-party administrator (TPA) Craig M. Stanley, CPA QPFC Financial Consultant specializing in Retirement Plan Consulting Frequent author, speaker, and advocate to the retirement plan industry, serving on multiple industry-advisory panels across the country Achieved designation of Qualified Plan Financial Consultant (QPFC) through the American Society of Pension Professionals & Actuaries (ASPPA) Holds Certified Public Accountant (CPA) license in Virginia Holds Series 6, 7, 63, 65 securities registrations & life/health insurance licenses Voted a Five Star Wealth Manager in Hampton Roads for Financial Planning Voted a Super CPA in Virginia for Financial Planning & Employee Benefits 13 years of experience in the financial services industry

4 WHAT SETS US APART Fiduciary We believe advice provided to retirement plan sponsors should be free from conflicts-of-interest. Therefore, our fee-based model allows us to provide our services and advice as a fiduciary alongside our clients. Acknowledging fiduciary status is a significant differentiator in the retirement plan marketplace and we will put it in writing. Independent & Product-Neutral Summit Group of Virginia has the ability to work with any service provider. Our advice is product-neutral and without bias, allowing us to serve solely in our clients best interests. As a result, there is never a need to unnecessarily move a new client to a different service provider. We only fix what might be broken. Fee-Based & Fee-Transparent In our fee-based model, our only compensation comes from a fully-disclosed and agreed-upon fee, typically structured as a % of assets or flat-dollar. Our boutique-structure allows us to keep our fees low while maintaining a close relationship with our clients. Any revenue-sharing or commissions paid from investment managers or providers will be used to offset our fee and/or other plan expenses. Knowledgeable Serving as a Retirement Plan Advisor nowadays takes more than just investment expertise. Led by a Qualified Plan Financial Consultant (QPFC), our education and experience provides us with a thorough understanding of retirement plan products, ERISA regulations, along with the ability to keep our finger on the pulse of this ever-changing industry. Our expertise is further supported by a team of Certified Financial Analysts (CFA) and ERISA attorneys through our alliance with Retirement Plan Advisory Group.

5 TOTAL RETIREMENT PLAN MANAGEMENT We serve as an independent advocate to our retirement plan clients managing the vendor, collaborating with the TPA, and providing advice on ALL aspects of the plan (i.e. the quarterback ). This structure ensures a more consistent and effective collaboration between the various components of the plan. Advising retirement plans is no longer just about investments... OUR OBJECTIVES: 1) Improving the overall satisfaction and retirement outcomes of employees 2) Ensuring the necessary processes are in place to maximize fiduciary protection 3) Finding & implementing efficiencies within the HR/administrative process PLAN DESIGN CONSULTING EMPLOYEE EDUCATION & SUCCESS INVESTMENT SELECTION & MONITORING THE QUARTERBACK FIDUCIARY SUPPORT & CONSULTING VENDOR SELECTION & MANAGEMENT FEE ANALYSIS, BENCHMARKING & NEGOTIATION

6 IMPROVING EMPLOYEE OUTCOMES Addressing the following items and implementing the applicable strategies can be critical to the overall success of employees: PLAN DESIGN OBJECTIVE: 90% participation AND 10% employee savings rate Employer contribution/matching strategies Automatic participation/deferral strategies Eligibility rules, vesting, and distribution elections can all make a difference INVESTMENTS OBJECTIVE: Simple, best-of-class options with 90% of employees utilizing one-stop, professionally managed solution Fund menu design strategies Making this process easy is critical Utilizing pre-made allocation solutions as a default option provides simplicity and support EDUCATION OBJECTIVE: Employees have full access to the support they need BUT their success is not dependent on utilizing it Access to independent, unbiased advice through one-on-one meetings (and no solicitation) Access to helpful online tools & resources that help answer, How much should I be saving? Targeted-communications and group meetings

7 MAXIMIZING FIDUCIARY PROTECTION Here s how our services & deliverables help fiduciaries satisfy their ERISA duties: Duty: Prudently select & monitor available investment options Solution: Investment Scorecard SM System - Proprietary and back-tested tool to assist in the fiduciary requirement selection & monitoring of investment options by fiduciaries - Easy-to-understand scoring system (0-10) - Separate scoring criteria for active mutual funds, indexed-funds, and target-date funds - Fully-integrated with Investment Policy Statement provided by Summit Group Duty: Annually review plan design, service provider roles, fees, & overall objectives Solution: Fiduciary Plan Review TM - Educates fiduciaries regarding their responsibilities and documents prudent processes - Examines/benchmarks the current plan design, demographics, service providers and fees - Delivered annually and fully-documented Duty: Periodically benchmark service providers Solution: B3 Provider Analysis TM page report providing an unbiased comparison of bidding provider s services, fees, and available investments - Delivered at least every 3-5 years Other services/deliverables to assist fiduciaries: Fiduciary Fitness TM Education Modules Detailed training modules to assist fiduciaries in understanding their responsibilities under ERISA Fiduciary File & Online Fiduciary Vault To assist in proper maintenance of important plan documentation Meeting Summaries Provided after all meetings to ensure fiduciary actions are properly documented Annual Service Plan Schedule outlining Summit Group s service commitments throughout the year Newsletters Our periodic newsletters will contain valuable information including fiduciary education, legislative & regulatory updates, and employee memos

8 OUR INVESTMENT PROCESS Selection & Monitoring of Investments Our proprietary Scorecard SM System provides a proven process to monitor and evaluate fund managers and investment strategies. The Scorecard SM ranking evaluates investments on a scale of 0 to 10 in core asset classes, including asset allocation investments. Investment Universe (20,000+ mutual funds) Investment Policy Statement Fund Menu Quantitative Qualitative 30% Style Factors Style Analysis Style Drift R-Squared 30% Risk/Return Factors Risk/Return Up/Down Capture Information Ratio 20% Peer Group Factors Returns Information Ratio 20% Qualitative Factors Manager Tenure Fund Expenses Statistics

9 SELECTING & MANAGING THE VENDOR Vendor Search & Benchmark When appropriate (but no less than every 5 years), we conduct an extensive vendor search to ensure client programs have optimal vendor partnerships. We help define the RFP strategy and criterion, approach those in the marketplace likely to provide the best match, and evaluate responses on behalf of our clients. From the initial assessment through implementation and ongoing plan management, we re firmly in our client s corner. Our search evaluates such criteria as: recordkeeping, technology, investment options, employee communication, compliance, fees, and much more. Ongoing Vendor Management It has long been our mission to be our client s advocate. Once we ve understood our client s goals, it s our responsibility to ensure the appropriate partners are brought to the table and then subsequently managed to objectives on an ongoing basis. We place ourselves between those providing services to our clients and our client s staff members, ensuring valuable HR time can be spent where it should be: growing the business. Identify needs & search criteria Identify bidders and send RFP Present initial analysis and select finalists Finalist presentations & vendor selection Implementation & ongoing vendor management

10 SUMMARY OF SERVICES Investment Selection & Monitoring Investment Policy Statement (IPS) design Asset allocation / fund menu design Proprietary Investment Scorecard System Investment monitoring reports provided quarterly In-person investment reviews, at least annually Vendor Selection & Management B3 Provider Analysis report Thorough comparison of current provider to competitors to ensure their product, cost and service delivery are in-line with expectations & industry Performed every 3-5 years Any RFP & vendor conversions are fully-managed by Summit Group Fiduciary Support & Consulting Written contract acknowledging fiduciary status, services & fees Fiduciary File & online Fiduciary Vault provided for maintaining proper documentation Meeting Summary provided after all meetings Fiduciary Fitness education modules provided to fiduciaries Plan Design Consulting Initial analysis and comparison of plan objectives and current plan design Fiduciary Plan Review performed annually to continually monitor and improve plan design aspects and consider new alternatives Guidance/education provided when new features are implemented Fee Analysis & Benchmarking Initial and annual fee analysis & benchmarking will be performed as part of the Fiduciary Plan Review Vendor fees will also be benchmarked vs. competitors every 3-5 years as part of the B3 Provider Analysis Assist the plan sponsor in negotiating fee arrangements Participant Education & Success Assist vendor with designing & implementing education programs Group meetings Individual one-on-one meetings Periodic educational memos for employees Participant metrics reviewed annually to gauge overall success and fine-tune the strategy This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. We do not provide legal advice. Please consult your attorney regarding your situation. Securities (and investment advisory services) are offered solely through Ameritas Investment Corp (AIC), member FINRA/SIPC. AIC and The Summit Group of Virginia are not affiliated. Additional products and services may be available through The Summit Group of Virginia that are not offered through AIC.

11 WORKING TOGETHER Analysis: Getting to know you Our job starts by helping our clients reexamine their goals and objectives, identify specific problems and opportunities, and determine the impact these can have for the future. Careful and meticulous gathering of data allows for meaningful and actionable information to result. This makes up the analysis phase of the relationship. It allows us to sit on your side of the table, to challenge assumptions, and to ask the questions no one else asks. Implementation: Turning ideas into action Once we have interpreted the problems and opportunities, the next step is to determine how options fit within a comprehensive corporate financial strategy. It is our responsibility to coordinate all tasks and responsibilities short-term and long-term to assure comprehensive management. Through this entire process, we act as our clients advocate with any vendors whose products and services will be used. That completes step two the implementation phase when we demonstrate that we take ownership of our clients concerns and foster a team environment to help solve them. Administration: Staying the course After implementation comes administration, where our ongoing service model takes shape. Through this model, we will track results to determine how suitable our solutions remain and modify aspects of the plan as conditions change. We re beside you all the way...