RTI WEALTH MANAGEMENT COMMITMENT TO 401(k) EDUCATION AND SERVICE

Document checklist

The documents listed here can provide valuable insights into a plan’s goals, needs and history. Having access to them makes it easier to understand how I can be most productive as the plan’s Financial Professional


  • Plan Document
    Including Adoption Agreement (if a prototype plan)
  • Summary Plan Description
  • Trust Agreement
    if separate from Plan
  • ERISA Investment Management Agreement(s)
    If plan has Discretionary Manager(s) under ERISA
  • 3(38) Investment Policy Statement
    If not available, any other materials that outline how investments are selected and how service providers are managed
  • Minutes from last Investment Committee meeting
  • Most recent Form 5500
  • Most recent Fee Disclosure Statement
  • 408(b)(2) Current investment line-up
    Including share classes
  • Annual Plan valuation
    Typically generated by recordkeeper or third-party administrator (TPA)
  • Education Policy Statement
    Overview of how educational needs of plan participants will be addressed
  • Employee demographics
    Key data, including number of employees, number of locations and age distribution (e.g., 18-35, 35-50, 50+)
  • Fee Policy Statement

Common fiduciary concerns questionnaire

Being a fiduciary means taking on important responsibilities; the more you know about them, the better equipped you are to make effective decisions. Yet even experienced fiduciaries can miss key issues in their approach to fiduciary matters. These 10 simple questions may be a helpful starting point for you to consider in reviewing whether there are areas where your current processes can be improved.

Questionnaire source code/ image/PDF to be provided by the client

Fee assessment worksheet 

The movement toward greater transparency in 401(k) plan fees has made it more important than ever for plan sponsors and financial professionals to understand the specific fees associated with different third-party services. The form below is designed to help you conduct an inventory of the services and fees currently being paid to various service providers

Fee assessment worksheet source code/ image/PDF to be provided by the client

Financial Professional evaluation questionnaire/survey

Complete the following so that we can best understand your satisfaction with the services and solutions currently being provided to you.

Questionnaire/survey  source code/ image/PDF to be provided by the client

Service summary - source code/ image/PDF to be provided by the client

Education Policy Statement

Section A — Education principles

As a Financial Professional, I am committed to supporting you, your plan and its goals. Participant education is a pivotal part of this commitment. The following Education Policy Statement is designed to provide you with a clear framework for how we intend to work with you to improve employee understanding of your plan’s offerings, encourage participation, and promote satisfaction with your company benefits.

I. The value of ongoing education

The primary purpose of any 401(k) plan is to provide employees with the opportunity to save and invest on a tax-deferred basis to help fund their future retirement. However, individuals vary greatly in their interest in and knowledge of financial issues. Without access to information about the principles and practice of investing, they will be limited in their ability to make decisions about whether to participate and, if they do, to make investment selections that make sense for their long-term objectives. What’s more, behavioral finance studies have shown that even well-informed individuals often make ill-advised choices due to emotion or inexperience. A well-constructed investment education program that provides ongoing support for participants not only increases the chances they will save money in retirement, it can also help to reduce the potential for fiduciary liability by empowering participants to make informed decisions.

II. Key processes and activities
To ensure that the firm’s education policy properly reflects current needs and circumstances, we suggest a systematic approach to the development and deployment of various educational initiatives. This requires a consistent process which allows for periodic adjustments in response to changes in plan features, participant priorities and the overall economic climate. This process should incorporate four key functions:
1 Assessmen
• Gather information about potential gaps in the knowledge of participants.
• Establish baselines for current plan participation rates and contribution levels.
2 Strategy
• Make recommendations for key activities, the timetable for their implementation, and the persons or organizations responsible for implementing them.
• Formulate a strategic plan which documents the assessment and recommendations.
3 Implementation
• Select educational materials via consultation with the Plan Sponsor and other designated fiduciaries, such as the Investment Policy Committee.
• Execute the strategic plan using communications techniques agreed upon with the Plan Sponsor (e.g., seminars, conference calls, Internet-based presentations, print materials, etc.)
4 Evaluation
• Conduct an annual review of recent educational initiatives and make adjustments as necessary to foster greater understanding and address new topics in response to changes in the regulatory and economic environment.


III. Communication strategy
Experience has shown that effective methods to successfully educate participants and potential participants include:
• Presentations and/or conference calls conducted by a Financial Professional. These provide an excellent opportunity to engage employees in financial topics they may not find time to explore on their own.
• Prepackaged educational materials, including but not limited to brochures, worksheets, emails and websites. These materials are typically
distributed through Human Resources in addition to the various notifications required by the plan. These materials provide a useful point of reference for interested employees to better understand their options and discuss them with family members.

Regardless of the communications vehicle, participants may potentially benefit from guidance on any of the following topics:
• Fundamentals of investing (e.g., types of assets, compounding of returns)
• Principles of asset allocation (e.g., diversification, risk tolerance, time horizon)
• Living in retirement (e.g., estimating future lifestyle costs and income needs)
• Basics of tax-deferred retirement plans (e.g., deductions, rollovers)
• The cost of waiting to start saving for retirement
• The impact of inflation on investments
While educating plan participants is the main priority, it’s also important for plan fiduciaries to stay abreast of regulatory developments and pronouncements concerning participant education so that they can structure their plan’s educational programs in a manner that can help them avoid unnecessary exposure to legal action and potential liability. I will be available to discuss any questions you may have about education relative to your fiduciary duties.

Education Policy Statement

Section B — Proposed education solutions

Date:
Prepared for:
Prepared by:

Questionnaire source code/ image/PDF to be provided by the client