Case Study: Fiduciary Assessments

Enterprise Iron Financial Industry Solutions, Inc.
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BUSINESS PROBLEM

A large Public Charter School was uncertain of their retirement plan fiduciary obligations and whether their investment menu, fees and service providers were competitive in the marketplace.

The client did not have the knowledge or resources to “know where to start” so they needed a trusted partner to develop and execute a plan that ensured the trustees understood their fiduciary duties and were acting solely in the best interests of the plan participants.

Enterprise Iron performed this engagement pro bono to give back to the communities in which we live and serve.

OUR SOLUTION

We deployed an experienced Accredited Investment Fiduciary Analyst (AIFA) to partner with the Chief Administrator and School Board.

We supported our client by organizing and managing the following activities:

  • Conducted a Retirement Plan Fiduciary Bootcamp training session for oversight of the Schools 401(k) Retirement Plan
  • Informed the Plan Trustees and School Board of their responsibilities and obligation
  • Reviewed the Retirement Plan’s Investment Menu (appropriateness of investment classes, relative performance and fees)
  • Examined existing third-party service provider relationships (products, services, contract terms and fees)
  • Prepared and delivered recommendations to improve the School’s fiduciary posture and oversight including ability to continuously monitor investments and reduce service provider fees

RESULTS & CLIENT BENEFITS

We provided the client with our direct experience in the Retirement Industry including fiduciary oversight and education, recordkeeping & administration and plan consulting services.

As a result of partnering with the School to complete a Fiduciary Assessment, we helped achieve the following outcomes:

  • Informed the Chief Administrator (Trustee) and Board of Directors of their fiduciary obligations
  • This included industry overview and the environment of fee compression engrossing the marketplace
  • Reviewed the plans direct compensation 408b-2 and 404a-5 fee disclosured
  • Reviewed the indirect compensation revenue sharing arrangements (12b-1 arrangements or sub-TA fees)
  • Negotiated an immediate 11 basis point (0.11%) reduction in plan fees, from 1.22% to 1.11%.
  • Recommended and agreed to form a Plan Investment Committee
  • Reviewed Service Provider terms and conditions
  • Agreed to go-to-market with a competitive bid process for recordkeeping services in Q3 2020

Client Testimonial upon completion of project:
“This was truly a win for our School and our Retirement Plan Participants.”

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