A Time of Change
Many may think we have had enough change and challenges over the past few years—especially as national and global economies still slump and the market volatility continues—but it appears our industry must continue to stay on its toes.
In fact, rarely have retirement plan advisers faced so many fundamental shifts simultaneously. Our cover story “Industry Evolution” (page 26) discusses five key shifts that are poised to change the retirement plan industry and retirement plan adviser model: the U.S. Department of Labor’s (DOL) revisions to its fiduciary-definition proposal; the implementation and aftereffects of the DOL’s new fee-disclosure rules; potential new U.S. Securities and Exchange Commission fiduciary rules and a stepped-up adviser-examination program; sponsors’ growing demand for customized and index investment options; and Baby Boomers’ transitioning from the accumulation phase to decumulation.
Some advisers are embracing those changes, despite the fact that many of these outside influences are sure to remake some aspects of their businesses. Many of the finalists for our PLANSPONSOR Retirement Plan Adviser of the Year and Retirement Plan Adviser Team of the Year are in that boat. Beginning on page 34 you can see the five individuals and five teams who are ready for the change and challenges presented by the industry, and who our judges believe are fit to be recognized as fulfilling the awards’ mission: “to identify the nation’s best advisers who are helping make retirement security a reality for workers across the nation.”
As an aside, I would be remiss if I did not note that the PLANSPONSOR Retirement Plan Adviser of the Year and Team of the Year awards would not exist without the skill, insight and dedication of a very skilled panel of judges, and I would like to take this opportunity to thank them for their time and service.
The finalists and winners of the award are those who our judges believe are serving their clients best. These are advisers who continue the retirement plan industry’s mission to help company employees and plan participants reach a secure retirement. They encourage committee members to change the status quo, and improve participant retirement security as a result.
It is true that it can be easier to go along with a committee that doesn’t appear to care about whether its employees have enough to retire, lacks concern about plan costs because those fees are borne by employees, or rejects automatic enrollment because of the cost of the coordinating match. However, the advisers who qualify for these finalist groupings do not accept that attitude, and instead challenge the plan sponsors and committees about why they choose to offer a program if they aren’t interested in its success.
For those advisers who present plan design solutions to plan sponsors that they believe can help a committee achieve goals, only to be challenged with reasons why those solutions are not the right fit for the plan or company at the time, our story “Bringing Clarity” (page 58) discusses ways to overcome those objections.
In keeping with the theme of change and those effecting change in the industry, this issue also includes research about how an adviser adds value to a plan by comparing statistics of plans that use advisers to those that do not (page 54); a discussion about how plan advisers can help those plan sponsors who are interested in evaluating retirement income options (page 62); and a discussion of what advisers need to know about 403(b) recordkeeping and the changes happening in that industry (page 66). Enjoy!
Note: We will begin the 2013 award process in just a few months, when a group of judges, which includes past winners, will review this year’s process and discuss what might change for the 2013 awards. For those who want to be included, please be on the lookout for the opening of nominations the day after Labor Day (September 4). And, while it may be an honor just to be nominated, you can’t win if you don’t play, so please take the time to respond to your nomination and enter the awards process.