401(k) & QRP Advisory:
401k & 403b defined contribution plans are a critical part of any corporation’s or institution’s benefits package. It requires a fiduciary level of care. Long before ‘fiduciary’ became a buzz word in the retirement plan space, our firm has served as a co-fiduciary to qualified retirement plans of all sizes.
In this co-fiduciary role, we are an advocate for plan sponsors and plan participants. Effectively serving in this role requires the following and is how we’ve built our retirement plan services model:
- It’s not a part-time job – qualified retirement plans are complicated and you must be an expert in order to ‘simplify’ the key decision factors so that plan sponsors and plan participants achieve desired outcomes.
- Costs are critically important – being ‘average’ in this category is not acceptable. We will ensure ‘best practices’ in terms of 1) keeping costs low, 2) how costs are retrieved, and 3) elevating the transparency of these costs so that they are properly communicated and benchmarked.
- No conflicts of interest – the appropriate recordkeeping platform and investment line-up should be driven by the plan objectives and competitive pricing – period.
- Running the investment committee meetings are not ‘check the box’ – they should be an opportunity to evaluate relevant information in a concise format so that intelligent decisions can be made.
- Participant Education & Engagement drives the success of the plan.If we can drive the costs down, provide a strong investment line-up, and a technology platform that is easy to use – then participant engagement can be tackled with conviction.We don’t outsource ‘education’ – it’s too important.
Virginia Asset Management can help plan sponsors examine the following critical questions:
- Are our plan costs reasonable?
- Are all of the resources available from our service providers being utilized?
- Is our Investment Advisor a 3(21) Co-Fiduciary?3(38) Investment Manager?Or are we assisted by a registered rep?
- Do we have a written and accurate investment policy statement (IPS)?
- Does our IPS contain sufficient detail to meet fiduciary prudence?
- How are the plan investment options performing relative to appropriate indexes, peer groups, and the IPS?
- Are reviews conducted on a regular basis to help determine whether appropriate policies and procedures are in place to address fiduciary obligations?
- Is the plan operating in the best interest of our participants and their beneficiaries?
Investment Advisory Services to Qualified Retirement Plans
Plan Needs Assessment:
Based on stated objectives of the plan sponsor and its representatives, conduct a comprehensive needs assessment of the plan. Recommend a course of action regarding key provisions of the plan.
Deliverable: Written documentation of plan’s goals, questionnaire or needs assessment tool, recommended course of action.
Investment Policy Statement Generation:
Create an Investment Policy Statement to define, implement, and monitor client’s investment strategy.
Investment Policy Statement Review:
Use the client’s existing Investment Policy Statement to assess client’s investment strategy needs and to implement and monitor client’s investment strategy.
Deliverable: Revised or existing IPS
Monitor Investment Performance:
Review investment performance against an appropriate index, peer group, and Investment Policy Statement objectives. Deliver quarterly monitoring report. Coordinate fund selection, de‐selection, and communication concerning the process of changing investments in the plan.
Deliverable: Quarterly monitoring reports
Investment Committee Services:
Coordinate/facilitate meetings with plan trustees, and review performance with investment committee.
Deliverable: Documentation of investment committee meetings and meeting minutes. Outcomes must be documented by investment advisor.
Conduct meeting(s) with plan participants on features and benefits of the plan, and deliver general financial education for plan participants.
Deliverable: Dates of events kept in file. Pre‐approved materials.
Facilitate Provider Selection:
Assist in establishing selection criteria based on stated objectives of the plan sponsor and its representatives. According to these criteria, which may include costs, investment choices, and services, assist plan in assessing different providers’ ability to meet objectives.
Deliverable: Written documentation of provider/administrator selection criteria, RFPs or other provider information, or minutes of meetings.
These services are through an investment advisory contract between the plan sponsor and Securian Financial Services, Inc. The advisory services may be selected on a service-by-service basis in the contract by the Plan sponsor, and therefore, a contract may not available services listed here.