Case Study: A Prudent Partnership

Situation:

A leader within the national credit union community maintained multiple retirement plans for its employees; a $45 million defined benefit plan, and a $15 million 401(k) plan. The company requested training for its board of directors covering the board’s duties regarding ERISA’s fiduciary principles.

The company desired training only on the defined benefit plan, as it believed its 401(k) plan was under the steady control of the board’s trusted investment service provider. Following one-day of board training, company leadership decided to restructure both the defined benefit plan and the 401(k) plan to be more prudent in its fiduciary responsibilities.

Approach:

Roland|Criss:

• Helped the client’s board members clarify their roles as fiduciaries through a one-day onsite training session.
• Assumed an ERISA full-scope fiduciary role as a result of the client’s heightened awareness of its fiduciary responsibility.
• Orchestrated an RFP process with the vendor community for the client’s retirement plans, in order to improve the service provider platform that adheres to appropriate fee transparency, conflicts of interest disclosures, and service quality.

Result:

The upgrade of the board’s fiduciary disciplines and restructuring of its service provider platform resulted in better management continuity for its retirement plans, improved communications to the client’s employee community, and a signficant reduction in costs to the plan’s participants.

Through its partnership with Roland|Criss, the client benefited from a 36% savings on the defined benefit plan and over 48% savings on the 401(k) plan, in addition to gaining invaluable fiduciary protection and assurance for each of its board members going forward.