Reduced Costs & Increased Participation for Retirement Plan
Manufacturer Enlists Bryson Wealth Management to Improve Employee Benefits
THE CLIENT
An international manufacturer of nutritional supplements.
THE SCENARIO
Prior to accepting the position, the new company trustee required a compliance and due diligence review of the company retirement plan.
DISCOVERY
Bryson Wealth Management engaged the company in a due diligence review – a deep dive that asked questions they had not been asked previously. The discovery uncovered a number of concerning issues and missed opportunities. Most important, the structure of the company retirement plan placed a high level of fiduciary liability on the company. Additionally, employee participation in the plan was below industry benchmarks, creating contribution issues for highly compensated employees.
SOLUTION
The company faced challenges with high administrative fees and low employee participation in their retirement plan. After exploring several options, our team focused on introducing a third-party administrator (TPA) to reduce costs and implementing technology to engage employees. While some advisors hesitate to recommend TPAs due to perceived complexities, we prioritized what was best for the client.
THE RESULTS
An Investment Policy Statement was implemented, drafted by an ERISA attorney, along with the addition of Qualified Default Target Date Investments. The ERISA attorney was also leveraged to address a Safe Harbor question regarding a mid-year change in eligibility from one year of service to six months. A new Third Party Administrator was recommended to reduce fees, and an Auto Enroll feature was introduced to increase participation. The current plan was benchmarked against other providers to secure improved pricing. Additionally, an employee educational campaign was implemented, featuring group meetings and one-on-one sessions to enhance employee understanding and participation.