Wabash Capital's Role for the Plan Sponsor
Wabash Capital helps retirement plan sponsors establish a written decision-making process as defined in Prudent Practices for Investment Stewards, by fi360. We provide investment advice to plan sponsors, thereby assuming fiduciary status as defined by ERISA laws and the Pension Protection Act of 2006.
This benefits plan sponsors by:
- Improving plan compliance;
- Reducing liability and;
- Reducing employer time and resources complying with applicable Federal laws.
ERISA 3 (38) "Investment Manager" for Plan Sponsors
Plan sponsors who hire Wabash Capital under an ERISA Section 3 (38) "Investment Manager" arrangement are electing to transfer fiduciary responsibility for certain plan decisions.
As "Investment Manager", Wabash Capital services include:
- Implement and provide ongoing oversight of a documented decision-making process
- Provide fiduciary management and applicable regulatory compliance
- Recommend the composition of an Investment Committee
- Organize Investment Committee meetings and keep written minutes
- Educate the duly appointed Committee members on their fiduciary duties
- Prepare an investment policy statement (IPS) for adoption by the Sponsor
- Define the plan's goals and objectives and annually monitor progress
- Select mutual funds for the Plan in accordance with the Plan’s IPS
- Create Asset Allocation Models using the plan investment options
- Monitor the investment options on the platform on a quarterly basis
- Evaluate and choose qualified default investment alternatives (QDIA) for the plan
- Review the Plan for 404(c) compliance on an annual basis
- Annually benchmark fees and expenses as required under ERISA Section 408b-2
- Issue an RFP or RFI for investment-related plan providers every three years
- If Participant Level advice is elected by the Sponsor, annually provide Participant Outcome Reports with "gap" analysis of progress towards retirement goals
ERISA 3 (21) "Adviser" Services for Plan Sponsors
As a second option, plan sponsors may hire Wabash Capital to serve as an ERISA 3 (21) "adviser." The plan sponsor retains responsibility for implementation of the above plan decisions but Wabash Capital advises the Sponsor as a fiduciary to the plan.
