Selection and management of investment options
One of the first steps in offering a new retirement plan is determining which investment options to include. This involves selecting investment types, assessing risk profiles and ensuring that funds are sufficiently diversified to meet ERISA regulations. Once options are selected, they will need to be monitored to ensure that their performance continues to meet plan requirements.
Employers can choose to take on different levels of responsibility for this work – handle everything themselves, make selections with the advice of a financial professional, or outsource all selection tasks to an investment manager. As with all categories, the employer’s fiduciary duty is at a minimum to keep informed of plan requirements and any updates to regulatory requirements .
You don’t need to drive, but you need to know where the plane is going.
As a plan sponsor, selecting and managing plan assets can be overwhelming, especially when your day is focused on ensuring your staff have what they need to succeed. It may be beneficial to speak with a Morgan Stanley financial advisor about how they can help you select and monitor plan assets through all phases of plan growth.
Create and administer the plan
Every company is different, and that includes the goals and reasons they have for offering a retirement plan. Creating a custom plan designed to move the needle on your business goals can be beneficial and reduce costs in the long run.
Once created, many administrative tasks can be handled by someone in your organization, such as an administrative assistant. A well-written plan sets out the activities that the individual can and should perform. These tasks may include employee enrollment, integration of payroll contributions, distributions, and more. There are cases in which the tasks to be performed here will require more oversight, for example, when the action requires interpretation of ERISA requirements.
When administering a pension plan, having the right advice to rely on can help navigate uncertainty, ease worries and provide a strategic advantage in business growth. Morgan Stanley at Work has an extensive network of vendors who can handle administrative tasks you might otherwise. A Morgan Stanley financial advisor can help assess ongoing plan needs and suggest appropriate solutions.