Background
North Pier Search Consulting led the US subsidiary of a global consumer electronic company’s search for retirement plan advisors with ERISA §3(38) capabilities for their $290 million 401(k) plan.
Challenges & Drivers
- Reduced Committee membership strained resources, prompting interest in an ERISA §3(38) manager to discretionarily run plan options.
- The plan’s longtime advisor had been acquired – prompting the Committee to fulfill their duty to monitor.
- Concern that incumbent services were not consistent with best practices.
Process
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- 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.
- Administered RFP and performed detailed due diligence.
- Reviewed §3(38) track records and performed in-depth investment analyses on leading candidates.
- Assisted in selection of three finalists; moderated, organized, and coordinated finalist presentations and selection conference.
- Negotiated and reviewed fees and contracts.
Results
- North Pier negotiated the replacement of the underperforming service team at highly-capable incumbent advisory firm with firm’s top talent.
- Transition to §3(38) services.
- Expanded services without increasing current market competitive fees.
- Client gained access to the full breadth of services offered, including proactive assistance with communications, competitive plan design, and fee benchmarking.
