Retirement Plan Concepts & Services, Inc.

Retirement Plan Insights January 2012

2012-01-13T08:36:00.002-05:00

Happy New Year!

For quite some time we have heard comments and discussions on the proposed fee regulations, but their potential ramifications have always seemed to be in the far distant future. However, 408(b)(2) (service provider fee disclosure to plan sponsors) and 404(a)(5) (plan sponsor fee disclosure to participants) are now imminent and will both have a significant impact in 2012. Here are some action items to consider in preparation for the new fee disclosures:

• Review service contracts and service agreements

• Verify TPA Revenue - TPAs receive platform subsidy/revenue for servicing retirement plans, so make sure this is being disclosed (part of new regulation requirement) and used as an offset to help lower plan expenses

• Provide information, or have meetings with plan participants to explain the statement changes they will see to help lessen confusion and frustration

• Review plan asset charges (VAC, DAC, etc.) to see if they have reduced as plan assets have grown, or if any pricing efficiency can be gained by reevaluating the plan pricing structure

Reviewing these items will help you better understand your retirement plan expenses and give you an idea of what to expect when the new disclosures are put in place.

Please let me know If you have any questions about TPA subsidies. I am familiar with most vendor subsidy programs and would be more than happy to provide details that could help lower retirement plan costs.

This Month’s Sales Idea

Focus on Payroll Provider Retirement Plan Platforms
Typically ease of use due to payroll integration is a major selling point for payroll providers to try and win business, but their service model generally provides inferior administration, ancillary services and consulting when compared to a national retirement plan provider and TPA service model. Also, many retirement plan providers now offer payroll integration through firms like Paylocity, Paychoice and Paybridge, which offer a more sophisticated payroll system at a better price. This allows advisors to incorporate an expert in each facet of a company’s retirement plan along with payroll integration at a better price.

This Month’s Success Story

We recently took over administration services on a group of plans where the incumbent TPA was not disclosing or utilizing the platform provider subsidy as a direct offset to administration expenses. We were able to reduce overall costs by thousands of dollars by directly offsetting our administration fees with the platform subsidy being provided. The administration fees will also continue to decline as the subsidy grows along with the plan assets saving the plans even more money in the future.

RPCSI is a preeminent Solution Oriented ERISA Consulting Firm that works with financial advisors to develop strategies that help them win business and design retirement plans that achieve the goals of plan sponsors.Ask how we can help you win business!

RPCSI...Your 401(k) Solutions Source

Want a quote or more information about our services?
The best way to learn about our services and pricing is to ask for a customized quote by contacting me directly, or via our company website link below. We look forward to the opportunity of working with you!

Contact Jason D. Brown, Business Development Director today for any questions, comments, or concerns!
Email: jdbrown@rpcsi.com Direct dial: 260-969-3865Cell: 260-445-2933 Direct Fax: 260-484-2782
Visit us now and get your quote today! www.rpcsi.com

What makes RPCSI different?

• We are locally and independently owned and operated

• Our consultants average 15+ years of experience and are ERPA, QPA and QKA designated

• Platform subsidy received is used to directly offset our fees, helping to lower overall plan expenses

• We partner with advisors on presentations, benchmarking and proposal structuring to help them win business

• We do full trust fund accounting and balance down to the participant level, not just to plan aggregate totals

• We are a key partner with most major platform providers and meet subsidy qualification standards

We would like to become your partner and help you win business!

Winning More Retirement Plans By Leveraging Business Partners

2011-10-31T09:36:00.002-04:00

This Month’s Insight

We have found that many advisors are not leveraging their business partners in trying to win retirement plan business. Your business partners have a great deal of experience in the retirement plan arena and have seen just about everything related to retirement plans…so why not use them as a resource?

RPCSI is very active in assisting advisors with proposal structuring concepts and we have taken part in numerous finals presentations over the years. We have found advisors who integrate RPCSI have a higher success rate of winning retirement plans and close business quicker. Remember….you have partners that can help!

Let us help you win more retirement plan business and increase your AUM!

This Month’s Sales Idea

It is a great time to review SEP and Simple IRA plan arrangements and to consider starting a 401(k) plan. 401(k)s have higher contribution levels than Simple IRAs and with advanced plan design allow for owners to receive a greater percentage of contribution than SEPs. It is a great way to help your client build their retirement plan assets and increase your AUM.

This Month’s Success Story

An advisor had a client using a SEP for their business and wanted to discuss other types of retirement plan arrangements. We gathered some census data and were able to show how a 401(k)-Cash Balance combination would allow the owners to significantly increase the amount of money they could save for retirement. The business owners went from saving $37,000 per year to saving a total of $150,000 per year without having to increase the contribution amount they were providing their employees. The contribution increase was also tax deductible to the company.

RPCSI is a preeminent Solution Oriented ERISA Consulting Firm that works with financial advisors to develop strategies that help them win business and design retirement plans that achieve the goals of plan sponsors.

Ask how we can help you win business!

Value Added Services To Advisors

2011-09-29T15:19:00.002-04:00

Two weeks ago I was at a strategic business planning event and had one of those moments where the proverbial “light bulb switched on”. While discussing how we compete against other firms in the market for administration business I realized that we do a great job of highlighting our credentials (ERPA, QPA, QKA & APR), how we do Full Trust Fund Accounting and our “gross to net pricing structure” that shows vendor subsidy offsets, but we do not properly highlight all of the other significant resources financial advisors can access while working with RPCSI. That being the case, I decided to make a point in this month’s piece to feature these advantages and explain how we partner with advisors to help them win business and increase their AUM (assets under management).
The following are resources available to financial advisors that partner with RPCSI

• Proposal structuring
• Discussion points for plan sponsor meetings
• Vendor analysis and benchmarking assistance
• Presentation partner
• Advanced and traditional plan design concepts that help maximize annual plan contributions
• Plan design illustrations
• Sales strategies and data mining
• Document review and provisional recommendations made for presentations

RPCSI provides these services because we want to partner with financial advisors and help increase their chances of winning business and increasing their AUM. These services along with our highly credentialed consultants are the major differences between working with a traditional administration firm and RPCSI…A Solution Oriented ERISA Consulting Firm!

This Month’s Sales Idea

We have recently noticed issues with some TPA operated open architecture arrangements. In some cases the mutual fund 12b-1s are not providing a level compensation structure, which creates an inherent conflict of interest for the financial advisor. The issue has prompted plan sponsors to move their plan to a national vendor that provides not only level compensation, but better websites and ancillary services for the participants and plan sponsors.

This Month’s Success Story

We worked closely with an advisory firm in structuring and presenting a proposal for a 250 participant, $10,000,000 plan prospect. We were recently informed that we all had won the business. Partnering on the opportunity illustrated the overall depth of the team to the sponsor by providing a specialist in each facet of the plan’s operation (Advisor, ERISA Consultant and Platform).

RPCSI is a preeminent Solution Oriented ERISA Consulting Firm that works with financial advisors to develop strategies that help them win business and design retirement plans that achieve the goals of plan sponsors.

Ask how we can help you win business!

2011-09-09T14:40:00.001-04:00

This is Retirement Plan Insights September 2011 Newsletter...The selling season has begun!

Last month’s edition discussed A Simple Way to Reduce Plan Costs…This month’s piece will provide thoughts on The Utilization of TPA Subsidies.

Most of us would prefer to be the sole option being considered when a plan sponsor wants to change their advisor/platform/TPA relationship, but sometimes being in a competitive situation can prove to be very beneficial. In competitive situations you get the opportunity to evaluate the services, pricing and expertise of other firms and see how your firm compares. In a recent competitive opportunity I noticed that aside from our firm’s administrators being ERPAs and QKAs (while many others are not) that a significant difference was that RPCSI used platform subsidy to help reduce plan administration costs while other TPA firms did not disclose, or use platform provided subsidies to offset/lower their billable expenses.

This situation was prevalent in both "recurring" and "installation" subsidies, but more so with the "installation" subsidy. The bottom line is that platform subsidies can be beneficial to a retirement plan when used in the appropriate manner. Please make sure to take these subsidies into consideration when considering a TPA for your current or prospective retirement plan clients.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Want a quote or more information about our services?
The best way to learn about our services and pricing is to ask for a customized quote by contacting me directly, or via our company website link below. We look forward to the opportunity of working with you!

Contact Jason D. Brown, Business Development Director today for any questions, comments, or concerns!
Email: jdbrown@rpcsi.com
Direct dial: 260-969-3865Cell: 260-445-2933 Direct Fax: 260-484-2782
Visit us now and get your quote today! www.rpcsi.com

What makes RPCSI different?
•We are locally and independently owned and operated
•Our administrators average 15+ years of experience and are QKA and ERPA designated
•Platform subsidy received is used to directly offset our fees, helping to lower overall plan expenses
•We partner with advisors on presentations, benchmarking and proposal structuring to help them win business
•We do full trust fund accounting and balance down to the participant level, not just to plan aggregate totals
•We are a key TPA with most major platform providers in the market

We would like to become your partner and help you win business!

©2011 Retirement Plan Concepts & Services, Inc.
Jason D. Brown, APR — Business Development Director
Tel: (260) 969-3865 • Cell: (260) 445-2933 • Fax: (260) 484-2782

Michelle Marsh is attending a Leadership Conference

2011-07-21T13:11:00.002-04:00

Attending the 2011 Leadership Forum in Chicago with 125 peers. Learning new and innovative ways to improve our ways of leading our employees, and clients and to become an innovative leader, using many methods, especially social media in the workplace.

The New Participant Statement Disclosures

2011-07-06T10:59:00.001-04:00

Hello Everyone!

This is Retirement Plan Insights for July 2011…..I hope all had a great 4th of July weekend!

Last month’s edition discussed How to Avoid Becoming Commoditized……This month’s piece will provide thoughts on The New Participant Statement Disclosures.

By now all of you have been inundated with information on fee disclosure and what will need to take place on a plan and participant level within the next six months. The intention behind these new rules is to provide fee clarity, so sponsors can validate the “reasonableness” of their contracts with plan service providers and for participants to better understand the costs associated with their accounts. That being said, participants are going to be receiving far more information than they have ever received in the past. Most of the new participant information will provide general data on the retirement plan and the investments; however, there are new expense disclosures that will now be included with the statements……..

In addition to the plan-related information that must be furnished up front and annually, participants must receive statements, at least quarterly, showing the dollar amount of the plan-related fees and expenses (whether "administrative" or "individual") actually charged to or deducted from their individual accounts, along with a description of the services for which the charge or deduction was made. These specific disclosures may be included in quarterly benefit statements required under section 105 of ERISA.

Initial reaction from the participants might be “why am I now being charged these fees when I didn’t get charged last quarter”, or “Why has my company started charging me all these new fees”. Although the plan’s fee structure may not have changed, the perception could be that it has because the participants were unaware of the costs associated with the plan. It will be paramount for advisors to educate their plan sponsors and participants on these new disclosures, so they better understand why the requirements are now in place and what the information means. This will significantly help advisors and plan sponsors avoid potential issues with disgruntled, uninformed participants complaining about fees.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

How To Avoid Becoming Commoditized

2011-06-01T08:13:00.001-04:00

Hello Everyone!

This is Retirement Plan Insights for June 2011…..hopefully we will start getting some decent weather!

Last month’s edition discussed The “Looming” 408(b)(2) Regulations. This month’s piece will discuss How to Avoid Becoming Commoditized.

With the retirement plan industry becoming hyper sensitive to plan related expenses, it is more vital than ever for service providers (advisors, TPAs and platforms) to have a strong value proposition in order to avoid becoming commoditized with low cost/low service providers.

As we all know, not all services providers are cut from the same cloth. Provider A and Provider B might perform similar services for a retirement plan; however, Provider A may have more experienced employees and provide a higher level consultation and services than Provider B. Without illustrating the true value Provider A brings to the retirement plan a sponsor might strictly base their decision on cost because they see no difference in the two providers, thus commoditizing the services.

To avoid becoming commoditized, a service provider should have a strong value proposition which differentiates their services, expertise and quality from others in the market. Including real life examples of how your firm’s services helped a client will also aid in this endeavor and help to validate why your firm should be selected/retained as a service provider for a retirement plan.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Retirement Plan Insights May 2011

2011-05-09T09:49:00.003-04:00

Hello Everyone!

This is Retirement Plan Insights for May 2011.

Last month’s edition discussed Plan Administration Arrangements. This month’s piece will try to provide more insight to The “Looming” 408(b)(2) Regulations.

I recently attended a seminar where Marcia S. Wagner of The Wagner Law Group was the guest speaker. She provided some excellent insight on prospective retirement plan legislative changes and really focused on the impact that 408(b)(2) will bring to the retirement plan industry.

One key takeaway from a fee perspective…

Service providers (advisor, platform and TPA) must:

• Show how much they are charging for their services
• Provide a description of the services being provided
• Illustrate how they are being compensated (direct and indirect compensation)

Providing this information will be an intricate component in avoiding prohibited transactions, breach of fiduciary duty by a plan sponsor and validating the “reasonableness” of a service arrangement.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Morningstar Meetings

2011-04-18T10:16:00.004-04:00

Spent the better part of last week traveling with Morningstar and talking to advisors about 321 & 338 Fiduciary concerns on plan investments. Had some really good conversations.

Retirement Plan Insights April 2011

2011-03-31T08:59:00.004-04:00

Happy Spring Everyone!

This is Retirement Plan Insights for April 2011.

Last month’s edition discussed the benefits of having a Written Service Agreement. This month’s piece will focus on Plan Administration Arrangements.

A predominate thought in the retirement plan industry is that retirement plans change vendors and advisors mainly due to expense and investment performance. Although expense and performance are important facets to consider (especially with 408(b)(2) coming into play), I have recently seen more plans change providers and advisors due to service and administration issues.

I believe this trend has been noticed by many platform providers in the market. In fact studies have been conducted which indicate that a retirement plan stays with a platform provider 2-3 years longer when coupled with a TPA for administration versus having the retirement plan bundled with the platform provider (This also means less disruption for the advisor, so they keep the plan longer). The main reasons being that TPAs typically have a higher level expertise, are more credentialed and provide a more hands on approach when working with plan sponsors. Also, the cost structure for a TPA arrangement is comparable to, and in many cases, less expensive than the bundled arrangement (when subsidies are properly used to offset fees).

Please consider these points when evaluating how your next retirement plan should be arranged.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

President of RPCSI appointed to Board of Directors for NIPA

2011-03-28T09:19:00.001-04:00

Michelle M. Marsh, QKA, who is the President and Owner of RPCSI has been appinted to the Board of Directors for The National Institute of Pension Administrators (NIPA) which is a national association representing the retirement and employee benefit plan administration profession. It was founded with the idea of bringing together professional benefit administrators and other interested parties to encourage greater dialogue, cooperation, and educational opportunities. NIPA's goal is to improve the quality and efficiency of plan administration.

Evansville Meetings

2011-03-28T08:37:00.002-04:00

Joined adviors on joint sales meetings with their prospective clients. Had good meetings!

Presentation In Indianapolis

2011-03-22T11:03:00.001-04:00

Spending the afternoon in Indianapolis for finals presentation.

Terre Haute Meetings

2011-03-14T09:52:00.003-04:00

Had good finals presentation in Terre Haute last week...I think bringing the three components to the presentation (Advisor, Platform and TPA/ERISA Consultant) really showed the quality and depth of the offering.

Indianapolis Meetings

2011-03-04T11:13:00.002-05:00

Spent yesterday in Indianapolis working with advisors on marketing strategies....had great meetings!

401(k) Errors That Suggest It’s Time For a Plan Provider Change | The Rosenbaum Law Firm P.C. - JDSupra

2011-03-01T14:11:00.000-05:00

401(k) Errors That Suggest It’s Time For a Plan Provider Change The Rosenbaum Law Firm P.C. - JDSupra

Thought this was interesting and wanted to share it.

Thornburg Plan Servicing Piece

2011-03-01T13:55:00.013-05:00

Written Service Agreement Sample

2011-03-01T08:35:00.001-05:00

Effective Date: January 1, 2011

Name of Employer Client:
Name of Plan(s) and Trustee Representative(s):

Investment Advisory Affiliates
1. Name of Advisor Representative:
2. Name of Broker-Dealer:

This Fee & Service Agreement (“Service Agreement”) is entered into between <> as the “Advisory Representative” and, on the other hand, <> as a “Broker-Dealer” under the Investment Advisors Act of 1940 and the Employer Client named above, as the sponsor of the Plan, on the Effective Date set forth above with respect to investment advisory and consulting services to be provided (the “Services”) for the benefit of the Plan, in accordance with the terms of this Service Agreement.
1. Appointment of Investment Advisor and Broker-Dealer. The Employer hereby contracts with <> as the “Advisory Representative” to provide investment advisory and consulting services to the Plan in conjunction with <> as the “Broker-Dealer.”
2. Investment Advisory and Consulting Services. <> and <> (collectively, the “Investment Advisory Affiliates”) will provide the Services set forth in Appendix A, commencing with the Effective Date and shall continue until terminated in accordance with the terms of this Service Agreement. The Employer Client understands that it has the sole responsibility for determining whether to implement any recommendation(s) made by <> and/or <> and the Employer Client acknowledges it is not required to implement any of the recommendations or otherwise conduct business through the Investment Advisory Affiliates. Nor do the Investment Advisory Affiliates have any responsibility for decisions made by the Employer Client that are inconsistent with their advice.
3. Compensation: Fees and Expenses. <> and/or <> shall receive compensation for their provision of the Services listed in Appendix A pursuant to the terms and conditions listed in Appendix B and any Revenue Sharing arrangements explained in Appendix C. Said appendixes are attached hereto and hereby incorporated by reference.
Importance of Fee Disclosure(s) in Appendix B. Investment-related expenses are most often “indirect” and, therefore, do not require an external fee billing or payment process. Nor do investment-related expenses typically show up as a direct charge against the participants’ account balances. Instead, the investment-related expenses will typically have an impact on the “net” rate of return, depending on each participant’s investment choices. Investment information is regularly made available to plan participants and includes not only performance and risk measurements, but also fee and expense disclosures.

Fees shall be paid timely in accordance with this Service Agreement. If the investment advisory and consulting fees are to be deducted from Plan assets, the Employer Client hereby authorizes the Plan’s recordkeeper or custodian to remit fees directly to <> and/or <> from Plan assets. Notwithstanding any provision to the contrary herein, if the Employer has agreed to pay any fees from business assets within 30 days after receipt of any invoice, the Employer Client agrees that the unpaid fees plus any applicable late charges may be deducted from Plan assets pursuant to the authorization contained in the previous sentence. Failure of the Employer Client to object to any fees and expenses within 30 days of receipt of any invoice shall constitute acceptance in full.

4. Employer Client Representations:

The Employer Client represents and warrants as follows:

(a) It is the “primary fiduciary” for the control or management of the assets of the Plan, and for the selection and monitoring of service providers for the Plan, in accordance with the requirements of ERISA.

(b) The execution of this Service Agreement and the performance thereof is within the scope authorized by the governing instrument and/or applicable laws. The signatory on behalf of the Employer has all necessary authority to do so. The execution of this Service Agreement has been duly authorized by appropriate action.

(c) Before this Service Agreement was entered into, Employer Client received disclosures from the Investment Advisory Affiliates concerning Investment and Consulting Services, and compensation, and the Employer Client acknowledges that it received such disclosures sufficiently in advance of entering into the arrangement evidenced by this Service Agreement to make an informed decision to engage said Investment Broker-Dealer and its Advisory Representative. The information in this Service Agreement, in an Appendix hereto or in a separate document constitutes these disclosures.

(d) The Employer Client acknowledges that neither <> or <> shall have any duty to provide the Employer Client with any advice or recommendations regarding the advisability of including any of the Employer’s capital stock as an investment or investment option under the Plan. In addition, if participants in the Plan may invest the assets in their accounts through individual brokerage accounts, a mutual fund window, or other similar arrangements, or may obtain participant loans, neither <> and <> will provide any individualized advice or recommendations to the participants regarding these decisions.

(e) All information provided or to be provided to <> and <> hereunder to enable them to perform the Services is and shall be true, correct, and complete in all material respects. The Employer Client acknowledges that <> and/or <>” shall be entitled to rely upon all information provided by the Employer Client, whether financial or otherwise. Employer Client agrees to promptly notify Advisor Representative in writing of a material change in the financial and other information provided to Advisor Representative and to promptly provide any such additional information as may be requested.

(f) Employer Client authorizes <> and its Advisor Representative to communicate with and obtain information from financial organizations, financial professionals, and record keepers working with the Employer Client.
(g) Employer Client authorizes <> and/or <> to utilize outside vendors or professional resources in order to provide services under this Service Agreement. Employer Client further authorizes <> and <> to release its information to those professional resources as necessary to fulfill the terms of this Service Agreement; pursuant to the Privacy Policy rules that govern the privacy of information provided by financial service customers.

(h) Employer Client acknowledges that neither <> or the Advisor Representative can or will provide legal or tax advice to the Employer Client or the Plan. Employer Client agrees to seek the advice of its legal advisor for any legal questions it may have relating to the operations and administrations of the Plan.

(k) The Employer Client has determined that the fees payable hereunder are reasonable and that to the extent any such fees are paid by the Plan, they will constitute proper plan expenses under ERISA or Department of Labor standards.

(l) The Employer Client hereby agrees to terminate any and all contracts or agreements with other service providers who provide plan services that are redundant to those covered by this Service Agreement.
5. Limits on Liability.

(a) Employer Client agrees that the only responsibilities of <> or <> hereunder are to render the services. In the performance of these services, neither <> or <> shall have the authority to take custody, control, or possession of any assets of the Plan.
(b) In the absence of negligence or intentional misconduct on their part, <> or <>, and their employees and agents shall have no liability for any act, omission, or error in judgment made by them in the performance of their duties hereunder. It is further agreed that no party or its employees and agents shall be liable for any exemplary or consequential damages arising pursuant to this Service Agreement. However, nothing in this Service Agreement shall in any way restrict or waive any remedies or rights of action the Employer Client would otherwise have pursuant to applicable federal and state laws and/or regulations.
(c) Client shall indemnify the Investment Advisory Affiliates and each of their current or future subsidiaries, affiliates, shareholders, directors, officers, employees, agents or other representatives, and hold each of them harmless from and against any and all claims, losses, expenses, liabilities, demands, obligations, costs, attorneys’ fees or damages of every kind and character without limitation arising out of or connected with: (i) any breach of the Employer Client’s representations and warranties or (ii) any action taken or failed to be taken by the Employer Client in connection with the operation or administration of the Plan which is unrelated to the Services or which, if related, was contrary to recommendations made by the Broker-Dealer or its Advisor Representative.

(d) The <> and <>, respectively, shall indemnify the Employer Client and each of its current subsidiaries, affiliates, shareholders, directors, officers, employees, agents, and other representatives, and hold each of them harmless from and against any and all claims, losses, expenses, liabilities, demands, obligations, costs, attorneys’ fees or damages of every kind and character without limitation arising out of or connected with any breach of the Investment Advisory Affiliates representations and warranties.

(e) In the event the <> or <> make a mistake in placing a trade requested by the Employer Client, the <> or <> will hold Employer Client harmless from any losses in the Plan account(s) directly caused by the error, as well as from all costs associated with correcting the error. If the Advisor Representative was responsible for the error, the Broker-Dealer will recoup the amount of such indemnification from the Advisor Representative. However, Employer Client acknowledges that the <> or <> cannot and will not be liable for errors, losses, and expenses: (i) that occur despite the best efforts of the <> or <>, or (ii) that resulted from any occurrence that was outside of the Broker-Dealer’s and/or Advisor Representative’s control (including trades that were not properly cleared through the Plan’s custodian, broker-dealer, clearing firm, mutual fund, or insurance company after being properly placed by the Broker-Dealer and/or Advisor Representative). In addition, the Employer Client recognizes most mutual funds reserve the right to refuse to execute any trade that might jeopardize the value of the fund, including a decision to restrict or prohibit asset management programs.
6. Fiduciary Status. The <> or <> acknowledge that, to the extent the Services involve advising as to securities, they will fall under the fiduciary standard set forth under ERISA. The <> or <> further acknowledge that, to the extent the Services constitute “investment advice” to the Plan for compensation, they will be deemed a “fiduciary” as such term is defined in Section 3(21)(A)(ii) of ERISA. Employer Client acknowledges that the sole standard of care imposed on the Advisor Representative, the Broker-Dealer and their agents as a fiduciary is to act with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character with like aims.

The parties acknowledge and agree that, unless stated otherwise on Appendix A, neither the Advisor Repreentative or Broker-Dealer:::

(a) Have any responsibility for and will not: (i) exercise any discretionary authority or discretionary control respecting management of the Plan, (ii) exercise any authority or control respecting management or disposition of assets of the Plan, or (iii) have any discretionary authority or discretionary responsibility in the administration of the Plan or interpretation of the Plan documents; and
(b) Is the “investment manager” of the Plan, as that term is defined in Section 3(38) of ERISA, and do not have the power to manage, acquire, or dispose of any Plan assets; and
(c) Is the ERISA “Plan Administrator” for the Plan.

Employer Client represents its engagement of the Investment Advisory Affiliates, as well as any instructions it provides to these Investment Advisory Affiliates with regard to the Plan, are consistent with applicable plan and trust documents. Employer Client agrees to furnish Advisor Representative with copies of such governing documents. Employer Client also acknowledges that the Services provided under this Service Agreement may only relate to a part of the Plan’s assets, and that Advisor Representative is not responsible for overall compliance of the investments within the requirements of ERISA or any other governing law or documents.
7. Proxies. The parties understand and agree it shall be the duty of the Plan trustees to vote any proxies that are solicited for securities held by the plan/trust. The Broker-Dealer and Advisor Representative expressly deny any responsibility for taking any action or rendering any advice with respect to the voting of proxies, unless otherwise required by law.

8. Expenses. If agreed to by the parties, Employer Client shall reimburse certain expenses incurred by the Broker-Dealer and/or Advisor Representative in providing the Services pursuant to the terms and conditions set forth in Appendix B. In addition, Employer Client shall reimburse the Broker-Dealer and/or Advisor Representative, respectively, for all costs incurred by them in providing records, preparing reports, and preparing for and providing testimony in any litigation, so long as neither the Broker-Dealer or Advisor Representative is a party to that litigation.

9. Termination. This Service Agreement shall remain in effect from the effective date set forth above until terminated by either party upon not less than 30 days prior written notice to the other. Upon termination, Broker-Dealer and Advisor Representative will have no further obligation under this Service Agreement to act or advise the Employer Client with respect to Services under this Service Agreement except as agreed to by the parties at the time of termination. The obligations of the Employer Client and the Broker-Dealer and Advisor Representative will automatically terminate upon the occurrence of one or more of the following conditions:

(a) Termination of the Plan(s) and the distribution of all plan termination benefits, zeroing out the assets held under the plan’s trust account(s) and finalized by the filing of a Final Form 5500 series return.
(b) Appointment of a successor for Investment Advisory and Consulting Services with respect to the Plan.

10. General Provisions:

(a) Amendment. The terms of this Service Agreement may be modified by mutual written agreement of the parties. However, any Fee disclosures or Fee schedules provided with this Service Agreement may be changed by the service provider in the normal course of doing business, without a formal amendment being made to this Service Agreement. The Service Provider(s) intend to provide advance notification concerning any updates to the Fee Schedule to the Employer Client.

(b) Notices. Any and all notices required or permitted under this Service Agreement shall be in writing and shall be sufficient in all respects if (i) delivered personally, (ii) mailed by registered or certified mail, return receipt requested and postage prepaid, or (iii) sent via a nationally recognized overnight courier service to the addresses set forth under the signatures of the parties or to such other address as either party may designate by notice in writing to the other.

(c) Interpretation. This Service Agreement is not assignable by either party hereto without the prior written consent of the other party. Section and other headings are for reference only and shall not affect the meaning of interpretation of this Service Agreement. This Service Agreement is binding upon and shall inure to the benefit of the parties and their respective heirs, successors, survivors, administrators and assigns. This Service Agreement constitutes and contains the entire understanding between the parties and supersedes all prior oral or written statements dealing with the subject matter herein. If any one or more of the provisions of this Service Agreement shall, for any reason, be illegal or invalid, such illegality or invalidity shall not affect any other provision of this Service Agreement and this Service Agreement shall be enforced as if such illegal or invalid provision had not been contained herein. This Service Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same agreement.

(d) Applicable Law; Forum. This agreement is made, or to be performed, in California, and shall be interpreted, construed, and enforced in accordance with the substantive law of the State of California without reference to conflict of law principles unless preempted by federal law. In the event that any dispute arises under this agreement, or relating to our obligations to each other, the parties agree that any arbitration under subsection (e) below and, if applicable any legal suit, action or proceeding arising hereunder, shall be submitted to court or arbitration in the jurisdiction and venue of San Luis Obispo, California.

(e) Arbitration Agreement. To the extent permitted by law, all controversies between the TPA and the Employer Client, which may arise out of or relate to any of the Services provided by TPA under this Service Agreement, or the construction, performance or breach of this or any other agreement between the TPA and the Employer Client, whether entered into prior to, on or subsequent to the date hereof, shall be settled by binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association. Judgment upon any award rendered by the arbitrator(s) shall be final, and may be entered into any court having jurisdiction. However, the parties agree that any dispute that arises solely from unpaid fees and expenses of $5,000 or less need not be submitted to arbitration.

The parties hereby execute this Service Agreement, to be effective as of the stated Effective Date.

<>,
EMPLOYER CLIENT

By: _____________

Date: ___________________________________________

<>,
TRUSTEE REPRESENTATIVE

By: _____________

Date: ___________________________________________

<>,
ADVISOR REPRESENTATIVE

By: _____________

Date: ___________________________________________

<>,
BROKER-DEALER

By: _____________

Date: ___________________________________________

Appendix A – Description of Services

All plans covered under this Service Agreement must conform to the terms and conditions set forth below. If the Services being provided will vary between the plans, a separate Service Agreement should then be completed for each plan.

Services (check all that apply):

 Plan Search Support. Advisor Representative will manage the preparation, distribution, and evaluation of requests for proposals, finalist interviews, and conversion support.

 Plan Design Consulting. Representative will review the Employer Client Plan design, including contribution, participation and distribution rules to assist in making the plan fit the Employer Client’s needs.

 Preparation of Investment Policy Statement (IPS). Advisor Representative will prepare an investment policy statement for the Plan based upon consultation with the Employer Client, to ascertain the Employer Client’s objectives, policies, and constraints and will assist the Employer Client in developing an IPS that is consistent with their objectives and the requirements of ERISA. Neither <> or <> can guarantee that the Employer Client will achieve the investment objectives in the IPS.

 Performance Monitoring. Advisor Representative will perform ongoing monitoring of investment manager(s) or investments will be evaluated according to the established guidelines to ensure compliance. The investment manager(s) or investments will be evaluated according to the established guidelines as outline in the IPS and investment portfolio characteristics, performance of duties, and investment process and philosophy. Advisor Representative will also, under applicable circumstances, monitor the appropriateness and continued suitability of each of the investments with a view to complying with the “broad range” requirement in the regulations under ERISA 404(c).

 Performance Reports. Advisor Representative will prepare reports evaluating the performance of Plan investment manager(s) or investments, as the case may be, as well as comparing the performance thereof to benchmarks set forth in the IPS. The information used to generate the reports will be derived from statements provided by the Employer Client, investment provider and/or third party.

 Investment Recommendations. Advisor Representative will recommend, for selection by the Employer Client, specific investments to be held by the Plan or, in the case of a participant-directed defined contribution plan, offered as investment options under the Plan consistent with the policies outlined in the IPS. Advisor Representative will recommend, for selection by the Employer Client, investment replacements if an existing investment is no longer suitable as an investment option, and will assist in the transition to the replacement option if requested by the Employer Client.

Appendix A – Description of Services (cont’d)

 Educational Services to Plan Investment Committee. Advisor Representative will provide educational services for the members of the Plan investment committee with regard to their service as committee members, including guidance with respect to fiduciary responsibilities. These educational services may be provided on a regularly scheduled basis such as quarterly, semi-annual, or annual meetings with the Plan’s investment committee. The number of business days for such educational services is limited to ______ days or  there is no limitation.

 Participant Enrollment and Education. Advisor Reprsentative will assist the Employer Client in enrolling Plan participants in the Plan, including conducting an agreed upon number of enrollment meetings, and conduct investment education seminars for Plan participants that are consistent with the guideline issued by the Department of Labor.

 ERISA §404(c) Fiduciary Protections. Advisor Representative will assist Employer Client in meeting the “broad range” requirement of ERISA §404(c) regulations but shall have no other responsibilities with respect to compliance by the Plan with the optional rules of ERISA §404(c) fiduciary protections.

 Non-Discretionary Trading. Advisor Representative will place trades at the Employer Client’s direction. Advisor Representative will place trades at the Employer Client’s direction. However, Advisor Representative will have no discretion regarding the trades to be made.

 Additional Services.

____________________________________________________________________________________________________________________________________________________________

Appendix B – Fee & Compensation Billings

All plans covered under this Service Agreement must conform to the terms and conditions set forth below. If compensation terms will vary between the plans, a separate Service Agreement should be completed for each plan.

Billing Contact and Address

Company or Individual
To Serve as Billing Contact

Phone:
Cell (Optional): E-mail:
Address:

City State, Zip
Name of Individual to
Contact for Plan Asset Values

Phone:
Cell (Optional): E-mail:

<> and <>
shall be compensated in the following manner:

*****************************************

Fee for Service, Category 1. For Employer Client Plan situations in which <> is not the broker-dealer of record.

PAID BY INVESTMENT PROVIDER (Select only one)

 Employer Client authorizes the investment provider or other third party to pay compensation due to <> and <> pursuant to the following terms. A periodic statement setting forth the compensation deducted from the Plan shall be provided by the payor.

 Flat fee of $_________________, paid in equal installments

 Annual  Quarterly  Monthly
 Advance payments required  Arrears (after-the-fact) payments required

 Percentage of Plan Assets equal to _______ Basis Points, paid based on the value of Plan assets in the method to be determined by the payor

 Annual  Quarterly  Monthly
 Advance payments required  Arrears (after-the-fact) payments required

 Onetime payment of $___________________, for services provided.

 Up-front, in advance  Upon completion

BILLED BY <>

 <> shall bill the above referenced contact and address. Fees shall be due upon receipt of each billing notice, unless debited from the account(s), in which case the fees shall be reflected on the client statement(s).

 Flat fee of $_________________, paid in equal installments

 Advance payments required  Arrears (after-the-fact) payments required

 Percentage of Plan Assets equal to _______ Basis Points, paid based on the value of Plan assets in the method to be determined by the payor

 Advance payments required  Arrears (after-the-fact) payments required

 Onetime payment of $___________________, for services provided.

 Up-front, in advance  Upon completion

***********************************

Fee for Service, Category 2. For Employer Client Plan situations in which <> is the broker-dealer of record.

PAID BY INVESTMENT PROVIDER (Select one)

 Employer Client authorizes the investment provider or other third party payor to pay compensation due to <> and <> pursuant to the following terms. A periodic statement setting forth the compensation deducted from the Plan shall be provided by the payor.

 Flat fee of $_________________, paid in equal installments

 Annual  Quarterly  Monthly
 Advance payments required  Arrears (after-the-fact) payments required

 Percentage of Plan Assets equal to _______ Basis Points, paid based on the value of Plan assets in the method to be determined by the payor

 Annual  Quarterly  Monthly
 Advance payments required  Arrears (after-the-fact) payments required

 Onetime payment of $___________________, for services provided.

 Up-front, in advance  Upon completion

BILLED BY <>

 <> shall bill the above referenced contact and address. Fees shall be due upon receipt of each billing notice, unless debited from the account(s), in which case the fees shall be reflected on the client statement(s).

 Flat fee of $_________________, paid in equal installments

 Advance payments required  Arrears (after-the-fact) payments required

 Percentage of Plan Assets equal to _______ Basis Points, paid based on the value of Plan assets in the method to be determined by the payor

 Advance payments required  Arrears (after-the-fact) payments required

 Onetime payment of $___________________, for services provided.

 Up-front, in advance  Upon completion

 Level compensation of __________ basis points is paid to <>’s affiliate, solely from the investment provider, with no fee paid to <>.

BILLED BY <>

 <> shall bill the above referenced contact and address. Fees shall be due upon receipt of the billing notice, unless debited from the account(s), in which case the fees shall be reflected on the employer client’s statements.

DIRECT ACCOUNTS

 Flat fee (annually) of $_________________, paid in quarterly equal installments

 Any compensation received by <> shall offset the fees of
 Advance payments required  Arrears (after-the-fact) payments required

 Fee for Service of a Percentage of Plan Assets equal to _______ Basis Points, paid based on the value of Plan assets at the end of the quarter and any compensation received by the <>’s affiliate

 Advance payments required  Arrears (after-the-fact) payments required

APPENDIX C
REVENUE SHARING ARRANGEMENTS (INDIRECT FEES)

<> and <> work in tandem with other service providers to ensure that the Employer Client has resources to help cover the broad range of responsibilities associated with the installation and maintenance of a tax-qualified retirement plan.

If directly affiliated with a TPA firm
<> is directly affiliated with the TPA firm, <> in serving the needs of Employer Clients who sponsor tax-qualified retirement plans.

Through revenue sharing arrangements, <> makes a certain percentage of compensation available to <> to offset and help to subsidize fee for service billings with respect to administrative and consulting services.

How this revenue sharing arrangement works. <> transfers <<70%>> of all investment-related income received to our affiliate company, <>; the remaining 30% of the investment-related income of <> is retained to cover accounting and administrative tracking with respect to these investment-related monies.

If in an alliance with a financial service company
<> participates in a revenue sharing arrangement that was established with John Hancock, our financial partner in this arrangement. This arrangement makes indirect compensation available to the investment advisors and other parties who were instrumental in the search to find: (1) an appropriate financial institution and (2) a high functioning daily valuation platform for the employer-sponsored 401(k) Plan. In the selection of this financial partner, both of these criteria are essential to demonstrate the capability of the financial institution as far as handling the needs of the plan, its participants, and the plan sponsor.

If income is received from a Rollover arrangement
<> acknowledges that it also anticipates receiving “revenue sharing fees” directly from the automatic IRA rollover provider for the Employer’s plan, Autorollovers.com. Autorollovers.com is an IRA resource center that assists with automatic IRA rollovers in terminated employee situations where the former employee does not respond to requests for distribution election forms and the amount of vested benefits is $5,000, or less. When a participant’s distribution circumstances warrant this type of transaction, the revenue sharing fee is no more than $25.

Currently <> has no other revenue sharing arrangements with respect to the Employer Client’s plan. Should this change in the future the Employer Client will be notified.

Indiananpolis Meetings

2011-02-24T07:59:00.002-05:00

Spending the day in Indianapolis taking part in meetings. Looking forward to helping advisors win and go after business.

Retirement Plan Meetings

2011-02-21T10:36:00.001-05:00

Conducting group advisor meetings this week to talk about positioning proposals and overall retirement plan management....

Indy Meetings

2011-02-17T07:57:00.002-05:00

Heading to Indianapolis today for meetings....

408(b)(2)

2011-02-14T09:58:00.001-05:00

U.S. Department of Labor Date: Feb. 11, 2011
Employee Benefits Security Administration Contact: Gloria Della
Washington, D.C. Phone: (202) 693-8666
Email: della.gloria@dol.gov
US Department of Labor announces intention to extend applicability date of section 408(b)(2) fee disclosure regulation

WASHINGTON --- The U.S. Department of Labor’s Employee Benefits Security Administration today announced that it intends to extend the applicability date for the new disclosure rules under section 408(b)(2) of ERISA to Jan. 1, 2012.

The department published an interim-final regulation on July 16, 2010, requiring certain service providers to employee pension benefit plans to disclose information to assist plan fiduciaries in understanding the reasonableness of the fees being charged for plan services and assess potential conflicts of interest that might affect the quality of those services. The new requirements are scheduled to apply to plan contracts or arrangements for services in existence on or after July 16, 2011.

“The department intended to have final rules in place sufficiently in advance of the July 16 applicability date to avoid compliance problems for both plans and their service providers,” said Phyllis C. Borzi, Assistant Secretary of EBSA. “Given the need to ensure a careful review of all the valuable input we received on the interim final rule, including suggestions for a summary document to further assist plan fiduciaries in their review of furnished information, we now believe plans and plan service providers would benefit from an extension of the rules applicability date. An extension of the applicability date to Jan, 1, 2012 will ensure that we have the time we need to get the final rule right and that plans and their service providers have the time they need to undertake orderly and efficient compliance efforts following publication of the final rule,” Ms. Borzi said.

408(b)(2)...what will be accomplished?

2011-02-14T09:55:00.002-05:00

408(b)(2)...what will be accomplished?

It seems there are a lot of high aspirations for the new fee clarity disclosures, but what is really going to be accomplish form all this additional material? The true motivation is to make sure service agreements are reasonable, but unless a plan sponsor benchmarks their plan with a prudent expert they will never really know if their plan costs are reasonable.

It seems that a benchmarking mandate (say every 3-5 years) along with the new disclosures would have been more beneficial in trying to make sure service arrangements are reasonable.

Meetings in Terre Haute IN

2011-02-11T08:28:00.005-05:00

Spent the day in Terre Haute had good meetings and met some great people. Lack of administration service and ERISA knowledge from a bundled arrangement prompted the meetings.

408(b)(2) Information

2011-02-04T09:09:00.002-05:00

Good morning!

I received this piece from Fred Reish that ties in well with the e-mail from Monday, so thought I would forward the information.

www.reish.com/publications/pdf/408(b)(2)impactonsrvprov.pdf

Plan Design and Audit Considerations

2011-02-03T08:28:00.003-05:00

Remember....for existing plans the magic number for triggering an audit is more than 120, but for start up plans the number is 100. It is important to keep that in mind when determining the eligibility provision. Once a plan reaches audit status, it remains an audit plan until the count drops back below 100.

NTSAA 403(b) Conference

2011-01-31T13:06:00.002-05:00

Michelle Marsh will be attending the NTSAA 403(b) conference this week to increase her knowledge of the changing landscape for 403(b) plan. This will allow us to better serve our clients and work with our advisors in this area of retirement plans. View Program at ASPPA.org

Retirement Plan Insights - February 2011 - 408(b)(2) "Disclosure Regulation"

2011-01-31T10:05:00.001-05:00

Good morning!

This is Retirement Plan Insights for February 2011. I am sending this out a day early since we are supposedly going to get hit with a fairly big snow storm tomorrow….get the sled dogs ready!

Last month’s piece discussed the benefits of a properly designed retirement plan and how that can benefit Key and Highly Compensated participants. This month’s edition highlights 408(b)(2) (Disclosure Regulation), which will be in place July 16, 2011.

This disclosure regulation was put in place to help plan sponsors determine if their “agreements” with their retirement plan service providers are “reasonable”. This regulation will require service providers to supply written notice to the plan sponsor detailing the services they render to a retirement plan and the compensation they receive. Although it has always been a good practice to provide this to a plan sponsor, it was not mandatory. This requirement will be in place this summer, so please coordinate with your broker dealer or legal department to make sure you are properly prepared.

I have included a link to bulletin created by Fred Reish and Bruce Ashton, which provides more detail.

http://reish.com/publications/article_detail.cfm?ARTICLEID=946

I also want to let you know that we have created a company blog that contains all of our monthly Retirement Plan Insights pieces, market trend updates and sales ideas. This link (as well as our other company sites like LinkedIn and Facebook) can now be found at the bottom of our e-mail signatures. Please make sure to visit our sites and comment on the pieces while you are there!

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

Thanks and have a great day!

Upcoming Customer Satisfaction Study

2011-01-28T12:33:00.001-05:00

At our request, our clients will soon be receiving an email invitation to participate in a customer satisfaction study which will provide information to us about how we might improve our service to you. This study is a demonstration of our commitment to providing top tier service and benefits to our clients.

The Gregory Group, a nationally recognized consulting firm, has designed the study to give us feedback on 40 areas of service excellence. The survey, which will be distributed to you via email, will take only 10 minutes to complete. Although brief, the survey will give us meaningful and measurable feedback on your experiences with us, what you feel is working well, and suggestions for how we might improve.

All responses will remain confidential and will only be shared with us in aggregate form. As a result we hope you will take this opportunity to give us your candid feedback and suggestions.

Thank you in advance for your time and for the opportunity to learn how we might serve you better!

2011-01-28T10:01:00.001-05:00

Was in Indy yesterday meeting with advisors....good conversations!

DC/DB Combo Plans

2011-01-26T08:57:00.005-05:00

These arrangements have become more popular recently and are great for those companies that have historically cash flowed well, have a smaller sized work force where the owners what to put away more $49,000/year.

Retirement Plan Insights - January 2011 - Plan Design

2011-01-25T09:27:00.001-05:00

Good afternoon and Happy New Year!

Last month’s e-mail discussed using “ERISA Buckets” to help pay plan expenses (administration, audit, etc.) and to distribute excess revenue generated by the investments back to the participants, which in turn helps to lower plan costs.

This month’s edition of Retirement Plan Insights will cover plan design.

One of the most prevalent questions received every year is how can a plan get more money allocated to the Owners, Highly Compensated and Key Employees. Of course employee education and installing a Safe Harbor Match or Non-Elective provision can help those groups defer more, but what else can be done to get more employer contribution money into those accounts?

This was a major focal point for many plans during the 4th quarter of 2010. One course of action is to review a retirement plan’s design and provisions. This may help to offer some alternative solutions to get more money allocated to those groups, especially if a significant amount of match and/or profit sharing contribution is already being made by the plan sponsor. This could be especially beneficial for dental and small physician groups, or for companies currently utilizing a SEP.

RPCSI has the ability to run illustrations which compares various plan designs and the related costs and benefits. These would help to determine if your client would gain from modifying their plan and could potentially bring fresh ideas and concepts to their attention. Please let us know if you would like any assistance in this review process.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Retirement Plan Insights - December 2010 - ERISA Buckets

2011-01-25T09:23:00.001-05:00

Good afternoon!

In last month’s edition I discussed vendor subsidy and why it is important for TPAs to use this money as a direct offset to their fees in order to lower plan expenses. This month’s piece will discuss the use of ERISA Buckets.

An ERISA Bucket is a plan expense account that captures revenue generated by a retirement plan through sources like 12-b1 and Sub-TA. The account can be established as a result of a retirement plan generating more revenue than needed to pay the platform and advisor, or can be explicitly created to pay known billable fees. Typically these accounts are used pay expenses related to administration, advisory, plan audit and recordkeeping; however, it is now becoming more prevalent to utilize this type of account for the purpose of capturing excess revenue generated by the plan and passing it back to the participants. This reallocation helps to lower costs for the participants and can help to continually lower the plan’s cost structure as assets grow.

An ERISA Bucket can provide a great deal of flexibility to the plan sponsor and would be a good feature to consider for plans with $5,000,000+ in assets.

Please feel free contact me with any questions.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Retirement Plan Insights - November 2010 - Retirement Plan Fees

2011-01-25T09:21:00.001-05:00

Good morning!

This month’s edition of Retirement Plan Insights will discuss Retirement Plan Fees.

In last month’s piece I discussed how TPAs are provided revenue from vendor platforms to help offset administration fees and how in many cases the subsidy is not used or illustrated as an offset. This not only causes more expense for the plan, but also provides an ever growing revenue stream for the TPA because the subsidy amount increases as the plan assets increase.

This is one component of retirement fees that needs to be reviewed in order to make sure that revenue is being properly credited to lower plan expenses. One way to determine if a service provider is receiving compensation is by reviewing a plan’s 5500. This is especially effective for Insurance based products and audit sized plans. You will be able see the parties involved with the plan and what revenue/commissions they are provided. With 408(b)(2) in place, plan fees are going to be a very important topic and knowing your retirement plan client’s fee structure is paramount.

RPCSI is very familiar with vendor subsidies and reviewing plan expenses. Please contact us with any questions you may have and let us know how we can help!

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Retirement Plan Insights - October 2010 - TPA Subsidy

2011-01-25T09:13:00.005-05:00

Good morning,

Every month I will providing a commentary on a retirement plan topic that I hope you find useful in your practice. This month’s topic is vendor subsidy.

Did you know that most retirement plan vendor platforms pay TPAs a subsidy for recordkeeping services? The amount can vary based on the platform, total assets, annual plan contributions, share class(es) used and vendor qualification requirements. This revenue is intended to be utilized by the TPA to offset their fees, but in many cases the revenue is kept and not accounted for in the billing process. Using and showing this revenue helps to lower retirement plan fees, makes the overall arrangement more competitively priced and provides fee clarity for the plan sponsor. This in turn helps advisors and platforms win and retain more business.

RPCSI shows “gross to net pricing” and accounts for this revenue….. does your TPA?

With 408(b)(2) and fee transparency requirements taking place it is vital for an advisor and a plan sponsor to fully understand the true cost structure of their retirement plans. We would appreciate the opportunity to show how this can be a significant impact to a retirement plan’s cost structure.

To advisors that currently work with us we appreciate your business. For advisors who have not yet used our services we would appreciate the opportunity to help you win business.

RPCSI….Your 401(k) Solutions Source

Social Media and the Market Place

2011-01-21T19:43:00.000-05:00

The time has come for all businesses to be active in the various social media options on the internet. Even as a TPA for 401(k) plans, we too need to utilize the available media sources to promote our services. Our website is a great resource for information, but unless you are looking for us specifically you may not find us. We hope to improve our chances of being found by becoming more active in the social media options that the web offers us. So we begin our blog. We hope to provide you with timely information, posts to our monthly e-news and quarterly newsletters and links to useful content related to 401(k) and other types of Retirement Plans.

Become a follower and stay informed, we are glad to have you.