Issue
A nationally recognized law firm with 500 employees across 11 locations faced significant challenges in managing their retirement plans. While they had an established 401(k) plan, they lacked an independent advisor to serve as a fiduciary and provide objective guidance. Without a formal process for reviewing plan investments, fees, and service providers, the firm was not fully aware of its fiduciary responsibilities under ERISA regulations.
Additionally, the firm had a cash balance plan but was dissatisfied with their current actuarial consultant, which further complicated their ability to effectively manage their retirement offerings.
Solution
To address these challenges, a comprehensive plan oversight and governance process was implemented. This included the formation of a Retirement Plan Committee, fiduciary training, and regular committee meetings to help ensure ongoing compliance and informed decision-making.
Key actions included:
- Benchmarking and negotiating plan recordkeeping fees, resulting in significant cost savings
- Adjusting plan investment options and reducing expense ratios with the goal of helping to optimize participant outcomes
- Providing day-to-day consulting on plan administration and compliance issues to reduce administrative burdens
- Educating plan participants on benefit offerings, providing investment advice, and sharing wellbeing resources to support them in achieving their retirement goals
- Delivering actuarial services to improve cash balance plan management
Outcome
The solutions delivered measurable results for the law firm:
- Helped reduce fiduciary risk for the plan sponsor and Retirement Plan Committee.
- Lowered plan recordkeeping fees by over 20%, creating immediate cost savings.
- Reduced investment option expenses by more than 20%, improving the value of the plan for participants.
- Streamlined plan administration and compliance, allowing the firm to focus on its core business.
- Improved the probability of participants meeting their retirement goals thanks to enhanced education and investment options.
| Company Information | |
|---|---|
| Industry | Professional Services |
| Geographic Footprint | National |
| Number of Employees | 500 |
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