Most plan sponsors who partner with a specialized Advisor follow a deliberate selection process before hiring their Advisor. This report offers guidance for plan sponsors interested in hiring a specialized Advisor, and helps them understand the different types of Plan Advisors. Findings are based on focus group discussions with plan sponsors who partner with a Professional Retirement Plan Advisor of some kind.
The study shows plan sponsors increasingly turning to formal RFP searches to find the correct Retirement Plan Advisor for their plan. Plan sponsors in the study ascribe many benefits to conducting a formal RFP search for a plan Advisor. Compared to other approaches, a formal search process
- is inherently fair,
- demonstrates the plan sponsor acts responsibly in the exercise of fiduciary duty,
- aligns plan goals with the services and business model of the selected plan Advisor, and
- provides an even clearer understanding of fees.