Standards of Excellence
The awards recognize 18 advisers, teams and firms, and were awarded again this year in three categories: Individual, Team and Multioffice Team. We look forward to introducing them to you on page 38. This year, our judging team—made up of PLANADVISER editorial staff and previous winners—upped the ante, evaluating advisers according to a higher standard. For example, to qualify to be considered as a finalist, advisers had to: have a majority of their revenue derived from employer-sponsored retirement plans; serve as a plan-level fiduciary; be committed to fee-based or nonvariable compensation; and show support and implementation of outcome-based benchmarks. As you read through the profiles of the three winners and the Q-and-A’s with the finalists, you will bear witness to their passion for measurably helping participants.
“Leading the Charge: The influence of advisers on retirement plans,” on page 28, highlights the results of the 2015 PLANADVISER Adviser Value Survey. The survey takes sponsor respondents to the PLANSPONSOR Defined Contribution (DC) Survey and compares their plan demographics, based on whether they do or do not have an adviser for their retirement plan. Overall, the results are sobering: The data show that while plan advisers are effective at improving retirement plan design and driving formal oversight, when it comes to the bottom line of better participant outcomes, advisers are falling short.
The average and median balances for plans with an adviser are slightly lower than those without an adviser. Further, plans with an adviser have only slightly higher average participation rates, and the average deferral rates are neck and neck. I hope this provides you with a new perspective on the value you bring to your clients. If you are not driving measurable success for your plan sponsor clients—or if your benchmarks are even lower than the industry averages—it might be time for you to go back to the drawing board and determine how to increase the value you add.
Did you know that 43% of advisers are over the age of 55, according to Cerulli Associates? If you or your team is tipping the scale toward veteran status, turn to page 66 to read “Seeking Out New Talent.” The feature gives tips about the benefits of hiring younger advisers, as well as how to attract interns and hire recent college graduates. According to those interviewed for the article, one of the most important things an advisory practice can do is to look for talent outside just the finance world and consider potential candidates from insurance and commercial banking.
More than half (52%) of Baby Boomers plan to work in retirement, meaning that participants need to consider longevity and health care costs, understand how to optimize Social Security and set a realistic budget for their retirement years. What is the role of the retirement plan adviser in this dynamic? We cover all of these issues in “The New Retirement,” page 62.
Knowing how much of our industry is driven by regulation, legislation and litigation, this issue we introduce a new department, Capital News, on page 18. In each issue, this segment will cover the latest news from Washington and the courts. The inaugural column examines the implications of the fiduciary proposal, and the factors in the U.S. Supreme Court’s weighing of the Tibble v. Edison fee case.
As always, we hope you enjoy these stories and that these deep dives into the latest developments in the retirement plan industry help you take a fresh look at your own practices and consider new ways of doing business—working with your plan sponsor clients and driving more successful participant outcomes. If you have ideas of your own, please do not hesitate to contact me.
2015 PLANSPONSOR National Conference
If you are looking to meet plan sponsors and learn about what is top of mind for them, then you should consider attending the PLANSPONSOR National Conference, to be held June 2 through 4 at the Fairmont Hotel in Chicago. This, our 10th annual conference, “The Evolution of Retirement Plan Design,” brings together legislative, legal and policy thought leaders with plan sponsors, retirement plan advisers and their providers. These three days of conversation address the current trends and best practices in investment options, successful employee education and engagement ideas, as well as cutting-edge plan design solutions. This year’s conference will help you identify key priorities for retirement plan success and will cover topics relevant to plans of all sizes and across all areas of plan administration.