Confero Winter 2015: Issue 9 | Page 18

Defined Contribution 17 options. The number is in line with what plans in the corporate sector offer. This is another example of how Higher Education plans come closer to mirroring corporate plans over time. to jointly develop a plan design, formulate an investment policy and hire a service provider, saving time, and money for the plan and participants. Average Number of Options in the Investment Array- Higher Ed (Fig.5) Leading Advisor Responsibilities – Higher Ed (Fig.7) Clearly Defined Role for Retirement Plan Advisor Advisor presence is common in healthcare organizations. 71 percent of healthcare plan sponsors work with advisors. This advisor is most likely a professional retirement plan advisor. 32 percent of healthcare organizations work with an investment advisor or securities broker who works exclusively with retirement plans, another 29 percent work with advisors who work primarily with retirement plans. Only 18 percent work with individual advisors. Leading responsibilities of the advisor are reviewing investment options, explaining provider fees, and supporting investment provider due diligence—with more than eight in ten healthcare plan sponsors stating this as an advisor responsibility. More than seven in ten state the advisor is responsible for learning the benefits philosophy, monitoring the service, and assisting with the implementation of the fiduciary process. Advisors are also responsible for due diligence support, making plan design recommendations, making sure the plan is within regulations, and monitoring participant access—more than half of plan sponsors have advisors responsible for this. Leading Advisor Responsibilities - Healthcare (Fig. 6) Other Areas of Study Provide Additional Insights Transamerica’s proprietary research in the NFP industry has also analyzed on-site representation, loan activity, withdrawals, choice architecture, deferral rates, employer contributions, and a variety of other areas of interest to sponsors and their advisors. I encourage you to contact me with questions and comments. Rob Goldman is the regional vice president of the TransAmerica New York regional office. Rob has over 25 years of extensive retirement plan sales and consulting expertise. Email: [email protected] | Phone: [phone] Plan Sponsor and Financial Professional Use Only Transamerica Retirement Solutions is prohibited by law from providing tax or legal advice outside the company. The information contained in this article is intended solely to provide general summary information and is not intended to serve as legal or tax advice applicable to certain matters or situations. For legal or tax advice concerning your situation, please consult your attorney or professional tax advisor. Although care has been taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. 17247-PS (12/14) ©2014 Transamerica Retirement Solutions Corporation. All rights reserved. Large Higher Education institutions are more likely than smaller institutions to rely on an advisor or consultant to assist them with the investment selection and plan compliance. Smaller institutions tend to rely on an advisor or consultant to assist with ongoing investment monitoring, to act as a plan fiduciary, or to assist with plan design changes. They will sometimes band together 16 | WINTER 2015