Background
North Pier Search Consulting led a law firm’s search for a retirement plan advisor and recordkeeper with ERISA §3(38) capabilities for their $40 million 401(k) plan.
Scope
To comply with ERISA’s duty to monitor covered service providers, North Pier was engaged to lead an ERISA advisor and recordkeeper dual search for a $40 million retirement plan for a law firm.
Challenges & Drivers
The client’s reasons for engaging North Pier include:
- Fulfilling their fiduciary duty to monitor.
- Potential transition to §3(38) services.
- Seeking to validate incumbents’ services, and ensuring they are consistent with best practices.
Process
- Thorough document review and interviews with Committee, staff, and management.
- Provided fiduciary education on best practices, state of the industry, and discretionary management.
- Developed a comprehensive client profile concluding in the construction of a detailed RFP.
- Identified qualified candidates from North Pier’s universe of over 120 advisors and recordkeepers.
- Administered simultaneous RFPs and performed detailed due diligence.
- Reviewed §3(38) track records and performed in-depth investment analyses on leading advisor candidates.
- Assisted in selection of finalists; moderated, organized, and coordinated finalist presentations and selection conferences for recordkeepers and advisors.
- Negotiated and reviewed fees and contracts.
Results
Advisor Search:
- Expanded services to §3(38) and negotiated a reduction in fees, bringing them in line with the market.
- Validated incumbent’s capabilities
Recordkeeper Search:
- Validated incumbent’s capabilities
- Negotiated a 15% decrease in fees, bringing them in line with the market.
*Performing simultaneous searches for two of the plan’s service providers saved the client considerable time and consulting fees.
