Global Manufacturing Company 401(k) Advisor RFP Case Study

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

    • 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.

 

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