Arnerich Massena Offers Best Practices for Plan Monitoring

The fourth in a five-part series, investment firm Arnerich Massena has published its white paper, “Retirement Plan Best Practices: Plan Monitoring.”

Previous papers in the series discussed plan governance, plan design, and investment menu construction. The series will close with a paper about covering participant education.

The plan monitoring report offers best practices for:

• Reviewing performance and other data of investment menu managers;
• Managing plan providers and best practices for conducting a request for proposals (RFP) and negotiation process;
• Benchmarking plan providers; and
• Assessing, monitoring, and benchmarking plan fees.

The paper includes checklists throughout.

“Maintaining an employer-sponsored retirement plan is an ongoing process, requiring dedicated attention and oversight,” the paper states. “Monitoring your investment menu managers, your plan providers, and plan fees is an important part of your overall fiduciary responsibility.” The paper guides plan sponsors in developing monitoring processes based on best practices that will help them fulfill their fiduciary duty while best serving their plan participants.

“Fiduciary liability often comes down to process more than outcome,” notes Terri Schwartz, managing director of institutional services and business development. “Having a thoughtful process in place, then following and documenting the process is the best way plan sponsors can demonstrate prudence.”