Case Studies

Meeting Fiduciary Responsibilities

When a company has nearly $80 million in plan assets and 6,000 employees, properly managing a retirement plan isn't easy. To assist them with meeting all the requirements of a prudent fiduciary, this sizeable organization hired Broad Street Capital Advisors' Retirement Plan Division.

The company lacked a formal investment committee, an investment policy statement and an adequate process for measuring investment success and failure. Without these plan components in place, the company risked serious penalties if a Department of Labor (DOL) audit had taken place.

Broad Street Capital Advisors, LLC was contracted to serve as a plan co-fiduciary and as a consultant on employee plan education and plan design. As part of our co-fiduciary services, Broad Street Capital Advisors, LLC reviews the fees associated with the retirement plan and negotiates with the plan provider on our client's behalf. In addition to drafting an investment policy statement and helping to establish a formal investment committee, Broad Street successfully negotiated lower provider fees; saving our client money and helping them meet the DOL's requirement of "reasonable" plan fees. We also worked with the plan broker to enhance their existing relationship with our client.

We now review the funds offered under the constraints of the investment policy statement and make specific recommendations on the fund portfolio. Our formal process requires quarterly reviews by the investment committee with official minutes. The process assures that our client is in compliance with the rigorous requirements of the DOL and ERISA.

Today our client reports that the company is more satisfied with its plan provider, the relationship with its broker and employee education initiatives. Company executives also appreciate the peace of mind that Broad Street offers by keeping their organization in compliance with all government regulation.