Case Study: Nonprofit Hospital
Situation:
Two nonprofit medical center executives were saddled with the day-to-day fiduciary duties relating to the management of the hospital’s 403(b) retirement plan. With the issuance of the January 2009 IRS regulations that included 403(b) plans under the umbrella of ERISA regulations, these hospital leaders sought guidance on their responsibilities as they related to the management of the hospital’s retirement plan and its overall employee community.
Approach:
Roland|Criss:
- Helped the client executives to understand their current fiduciary processes and potential risks, as well as those areas of exposure for the board of directors due to current fiduciary practices.
- Assumed fiduciary responsibility and liability on behalf of these leaders, so as to ensure the appropriate adjustment of fiduciary processes for the client.
- Implemented various changes to the structure of the client’s fiduciary processes and vendor selection in order to streamline fees and minimize management time, while wholly adhering to all legal and ethical fiduciary responsibilities.
Result:
By un-bundling the investment vendor services that were being provided to the client by one investment service provider, Roland|Criss helped the client reduce overpricing issues that had been hidden in the vendor’s complex fee reporting structure. Roland|Criss’ training of the client’s board of directors and executives increased the client’s confidence in its ability to prudently make decisions regarding the hospital’s retirement plan in the future.
