What plan sponsors want from retirement plan advisers

What plan sponsors want from retirement plan advisers
Advisers can make themselves more valuable to employer clients by following these tips, according to a panel of plan sponsors at National Association of Plan Advisors' 15th annual 401(k) summit.
APR 19, 2016
Keeping clients up to date on industry news and helping to contextualize 401(k) plans within a broader benefits package are a couple of ways advisers can make themselves more valuable to employer clients, according to a panel of plan sponsors at the National Association of Plan Advisors' 15th annual 401(k) summit on Tuesday morning. “I don't always have the time to keep up with all the new laws,” said Rhonda Curry, vice president of human resources at Hornets Sports & Entertainment. “I depend on our adviser to tell us what's evolving.” Referencing the Labor Department's new fiduciary regulation, for example, Ms. Curry said that something like a one-page, succinct distillation of the 1,000-plus-page rule conveying what the rule is, what it means and what a plan sponsor needs to do, is incredibly valuable to a plan sponsor. “That's the best part about the relationship,” Ms. Curry said. Echoing Ms. Curry's sentiment, Kathryn Wall, executive vice president of human resources and organizational development at Mary Washington Healthcare, a health care system in Virginia, said the rule is “like French” to her because it's difficult to understand. Ms. Wall also expressed she doesn't expect her plan adviser to be a “total expert” on everything. An adviser should be forthcoming about that lack of expertise, but could be valuable by connecting a plan sponsor to an expert on the subject, she said. Similarly, advisers could be helpful by connecting plan sponsors to news stories or social media that would be relevant and important, Ms. Curry said. For example, reading through articles and combing through social media posts and podcasts, then pointing out the pertinent ones and distilling them into key points would cut down on the time she spends doing that herself, she added. Further, advisers can stand out by helping illustrate to employees the value of a total benefits package as opposed to just the 401(k) plan, Ms. Wall said. An adviser who is knowledgeable about health care and trends in other types of benefits would be valuable, because retirement fits into the broader benefits picture, which is difficult to get employees to understand, she added. “It does integrate together around the concept of total reward,” said Ms. Wall. Acting as a conduit of information from employees, such as relaying common questions asked of the adviser by participants, is also useful from a plan sponsor's perspective, said James Blunt, chief financial officer at Continental Resources Inc. “Continue providing the communication to us, but also continue to be open to the participants — listen to what they have to say and provide us the feedback to it, because we're basically a team working together,” Mr. Blunt said.

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