Third Party Plan Administrator

#ICYMI Evaluating the Third-Party Plan Administrator or Trustee

April 18, 2019

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#ICYMI (In Case You Missed It), Following the news of a major acquisition of retirement business last week, we are re-sharing our comments on: Assessing Your Plan Administrator and Your Nonqualified Deferred Comp Plan or Rabbi Trust

Big Changes. Inevitable Questions

Earlier this week, Principal Financial Group Inc. announced that it has entered into an agreement to buy Wells Fargo & Company’s retirement plan services unit for $1.2 billion. The acquisition covers all existing Wells Fargo Institutional Retirement and Trust (IRT) business. As of December 31, 2018, the respective Wells Fargo retirement businesses had $827 billion in assets under administration served by approximately 2,500 employees in locations across the US, the Philippines and India.

The transaction is expected to be finalized early in the third quarter, subject to receipt of required regulatory approval. Given the scope and timeline of this transition, questions and concerns may logically arise.

The team at Fulcrum Partners is wholly independent, which enables us to provide thoughtful, strategic insights, specific to your organization’s unique needs and objectives. We can leverage our independent position to help your company identify a third-party administrator or trustee that specifically meets your objectives and the needs of your nonqualified plan participants.

Evaluating the Third-Party Plan Administrator or Trustee

Fulcrum Partners’ proprietary evaluation process assesses potential plan administrators based on:

  • Ownership structure/background
  • Client data/organization size
  • Technology capabilities
  • Legal and compliance resources
  • Financial soundness and fiduciary capability
  • Asset/liability management synchronization
  • Participant services and website experience
  • Plan sponsor services and reporting capabilities
  • Communications and graphic design resources
  • Estimated fees

Changing tax codes, corporate acquisitions, and the increasing demands of attracting and retaining key talent are critical reasons to reconsider previously accepted constructs of retirement planning, reevaluate your choice of plan administrator, and ensure that your organization has made the best decision for its employees and its future.

Advisory services offered through CapAcuity LLC and Valmark Advisers, Inc. SEC Registered Investment Advisors. Securities offered through Valmark Securities, Inc. Member FINRA, SIPC. Fulcrum Partners is a separate entity from Valmark Securities, Inc. and Valmark Advisers, Inc.


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