Blue Ridge Associates (“Blue Ridge”), a third party administrator (TPA) for ESOP and qualified retirement plan benefits, announced that they have acquired Tax Sheltered Compensation, Inc. (“TSC”). TSC is a TPA, serving 3,100 plans covering over 152,000 participants across the small and middle-market business community.
When it comes to business, I say that I’m not competing with any other ERISA attorney out there, I’m competing against myself.
I will say that the biggest obstacle to getting business has been my opinion. Being frank and espousing what you believe in, can certainly rankle people, especially those who think ADP and Paychex are great at plan administration.
Whether it’s producing third-party administrators, or payroll providers, or opining that an auditor had to be truly independent from other plan providers, my opinions can offend. I should say less and only nice things, but that’s not me. If something bad in the business is going on, like a lack of fee transparency before fee disclosures or punitive termination fees, I’m going to say something. That’s me. You need to realize that expressing an opinion, no matter how popular, can offend and draw away business. There is a cost for “free speech.”
There are a lot of great 401(k) services out there that I haven’t used, so touting them isn’t going to be a big thing for me. I will tout the folks at PEP-HUB (PEP-HUB.com).
I came across Robb Smith and Jerry Conway a few years back when they were tabulating information on pooled employer plans (PEPs) and pooled plan providers (of which I serve as one). I understood they also conducted Requests for Proposals for those looking for PEP solutions. As an ERISA attorney for aa multiple employer plan that wanted to transition to a PEP, I couldn’t recommend my solution (conflicts of interest are a big thing for me to avoid), so I recommended PEP-HUB to conduct the RFP so that the process was on the up and up.
Robb Smith and Jerry Conway conducted a very economically reasonable and thorough RFP process. Impressed with their work and handling of the process from beginning to end. Anyone looking for PEPs should seek their guidance.
For 14 years now, I have had an ERISA practice of my own and my favorite part of the job is meeting people across the retirement plan industry. Part of my practice is helping advisors and third-party administrators (TPAs) with free content they could use and the answering of a question or two, on the house.
So what drives me nuts is when I get contacted by a new advisor and their only concern is getting my business to be a client of theirs or that I have referrals for them. First off, I handle my assets and second, if I have clients to refer to advisors and TPAs, I’m going to refer it to advisors I have known for years, and not someone I just connected to on, LinkedIn.
The retirement plan business is relationship-driven. That means building relationships, that take time and effort, not something that can be created out of thin air, in a day.
I had a running joke about places I’d work where I felt the only way they’d tell you that the business closed was by letting you know after the doors closed. We were the last to know anything.
With the news of the Chase data breach, make sure any plan providers advise you of any data breach on their end. As someone who hired them, there is some culpability and you don’t want to be on the hook for something that you are unaware of.
You work for a company, you want benefits. When I worked for others, what I wanted was a retirement plan.
So it comes as no shock that people want any type of retirement coverage, even if it is state-run, according to a study from the National Institute on Retirement Security (NIRS).
According to the study, 77% agree that a state-run program is a good idea. 82 % of Americans said they would participate in state-facilitated retirement programs, a rise from 75% just four years prior in 2020. The sentiment is held across all party lines, with 86% of Democrats, 74% of Republicans, and 71% of Independents showing strong support for state-wide retirement programs.
I like state plans because they increase retirement plan coverage and that could certainly spur employers to have plans of their own if mandated to offer one, or join a pooled employer plan.
They have been around for a long time and while I. think they can be beneficial, managed 401(k) accounts could certainly use a rebrand.
A recent PlanAdviser article asked if there should be a rebrand for this service and I think it should. I don’t think the name for it, truly shows what it is, and doesn’t fully engage participants who should consider using such a service. There is such a large group of participants who could use the help, and I think there is a disconnect for them, as to why getting investment expertise at a low fee, is a good thing.
It was great hosting a live event again. I didn’t hold any live edition of That 401(k) Conference because people didn’t want to attend or sponsor the location I came up with (Detroit and Oakland) and Yankee Stadium was incommunicado (we’re back live there on June 7th).
It was well attended and I had people who wanted to take pictures with me on the field like I was some celebrity. I even had plan providers, who sponsored the event, say nice things about me, one calling me an icon.
As someone who didn’t get many compliments from family members or the bosses at work while lesser people did (see my article on the “prop up”), I try to downplay the compliments. Listen, I’m just doing my job, working with clients and knocking out content that plan providers use for their business. As I have been trying to do for the last few years, I should complain less and enjoy the moment.
People compliment on the good work you do, don’t downplay it, like you’re supposed to do your job, but accept the compliments because the nature of people is to complain more than compliment.
It was great hosting a live event again. I didn’t hold any live edition of That 401(k) Conference because people didn’t want to attend or sponsor the location I came up with (Detroit and Oakland) and Yankee Stadium was incommunicado (we’re back live there on June 7th).
It was well attended and I had people who wanted to take pictures with me on the field, like I was some celebrity. I even had plan providers, who sponsored the event, say nice things about me, one calling me an icon.
As someone who didn’t get many compliments from family members or the bosses at work while lesser people did (see my article on the “prop up”), I try to downplay the compliments. Listen, I’m just doing my job, working with clients and knocking out content that plan providers use for their business. As I have been trying to do for the last few years, I should complain less and enjoy the moment.
People compliment on the good work you do, don’t downplay it, like you’re supposed to do your job, but accept the compliments because the nature of people is to complain more than compliment.
The new fiduciary rule, which had its final rule, published, got its first lawsuit.
The Federation of Americans for Consumer Choice (FACC), along with several independent insurance agents, filed a lawsuit in the U.S. District Court for the Eastern District of Texas against the Department of Labor (DOL).
FACC says it will seek a preliminary injunction to stop the new rule from taking effect while the case is contested.
FACC claims that by implementing a new fiduciary rule, the DOL has violated the Fifth Circuit’s 2018 rule that had vacated the department’s previous 2016 fiduciary legislation. Expect more litigation down the pike.
