Trends and Trendsetters

Our cover story this issue, “Re-orientation: The 2014 PLANSPONSOR Defined Contribution Survey” (page 26), gives you our version of the important metrics. It examines a broad range of characteristics of defined contribution (DC) plans across five different ranges of assets under advisement (AUA) and 48 different industries. You can use it to get a sense of where your client plans stand in reference to the overall market segments into which they fit.

A second research report in this issue is “Attention to Detail: The unique opportunities of micro plans” (page 42), which looks at plans with less than $5 million in plan assets. While many advisers aim to move “up market,” just over half (52.0%) of plans with less than $5 million work with an adviser—offering ample opportunities for retirement plan specialists to win their business.

Additionally, of those plans working with advisers, the support and plan design of smaller plans falls woefully short of the standards used in midsize and mega plans, giving advisers many openings to bring marked improvements to these offerings.

One of the ways in which we recognize advisers who have been successful in helping their retirement plan clients build flourishing plans during complex markets is through our annual coverage of the PLANADVISER Top 100 Retirement Plan Advisers (page 34). The 2015 listing attracted hundreds of submissions from advisers throughout the country, resulting in a set of standout leaders in three divisions—individual, team and multioffice team—and three categories—assets under advisement, total plans under advisement and specialization in defined benefit (DB), 403(b) and nonqualified plans.

Although we are still waiting for action from the Department of Labor (DOL) related to the fiduciary rule, issues around that topic are vital for retirement plan advisers to understand, if they hope to remain competitive. In “Getting Your Bearings: Determining the right fiduciary service for your clients” (page 50), we examine the three types of retirement plan fiduciary outsourcing services—3(16), 3(21) and 3(38)—what each requires of the adviser, what kinds of fees they can command and what kind of insurance you might need to cover any liabilities.

Are you interested in perfecting your marketing and responses to requests for proposals (RFPs)? Then turn to page 58 for “Standing Out in a Crowd: Ideas for differentiating your practice.” Simply offering lower fees is no longer sufficient. Sponsors are looking for advisers who are experts in their industry niche and who can significantly improve their plan—and advisers need to develop distinctive brands that highlight these skills.

“Plugging Plan Leaks” (page 54) examines ways that retirement plan advisers can coach sponsors and participants on reducing—or avoiding—loans and hardship withdrawals. Advisers must teach their clients and participants that such loans, commonly referred to as leakage, are a serious obstacle to participants achieving a successful retirement.

A watershed Supreme Court case is the topic of this issue’s Fiduciary Fitness column (page 63): Tibble v. Edison International, which is rooted in whether to maintain the six-year statute of limitations on lawsuits under the Employee Retirement Income Security Act (ERISA). Tibble has important implications for sponsors and advisers—and could potentially expose them to additional liabilities.

I hope these articles provide you with fresh insights for how to run your practice and better serve your clients. As always, I welcome your input.

Awards for Excellence

The 2015 PLANSPONSOR/PLANADVISER Awards for Excellence Dinner takes place Tuesday, March 31, at Chelsea Piers in Manhattan. This annual event applauds the accomplishments of outstanding leaders in the retirement plan industry—those who are using best practices to improve the retirement readiness outcomes of their participants. The evening begins with a networking cocktail hour as the sun sets over the Hudson River and, over dinner, recognizes the 2015 PLANSPONSOR Retirement Plan Sponsors of the Year, the 2015 PLANSPONSOR Retirement Plan Advisers of the Year and the 2015 PLANADVISER Top 100 Advisers. New recognitions include the PLANSPONSOR Service Stars and the PLANSPONSOR Best in Class Retirement Plans. We will also cite retirement plan provider and investment manager leaders, as measured by our annual PLANSPONSOR Defined Contribution (DC) and PLANADVISER Adviser surveys.