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 Retirement and Defined Contribution Plans typically pay a large number of professionals, such as consultants, investment managers and service providers to evaluate, manage and maintain ERISA-qualified pension plans. The result has been nothing more than the lining of the pockets of those providing advice and management, allowing them to blossom, whereas the plans themselves have not.
Unlike most other firms, we provide in one cohesive solution the fiduciary and investment skills needed to succeed. We are deemed to be “prudent experts” in accordance with ERISA standards. Our involvement enables you to focus on what you do best – running your business – and leaving the plan investments and management to us. Plan management is incredibly complex and requires vast knowledge of both administration and investments. Moreover, there are significant consequences to the sponsor, the officers and directors for any breach of fiduciary duty as defined by ERISA.
How do we solve this problem? We Operate as the ERISA 3(38) Fiduciary to the Plan.
We become the ERISA Section 3(38) Investment Manager, enabling us to become an ERISA section 405(d)(1) independent fiduciary to the plan.
By acting as the 3(38) Fiduciary, coupled with our wide array of turn-key solutions, complexity, liability and cost associated with the management of an ERISA-qualified pension plan are significantly reduced. We work closely with the plan sponsor either as its named fiduciary or as an independent fiduciary. It is extremely important for corporate directors and officers of plan sponsors to understand that any failure to perform as a “prudent expert” can result in sub-par investment returns as well as potential personal liability. Oliver Capital Management can remove that exposure by acting as the Fiduciary. In other words, we are the “prudent expert” working on behalf of the plan.
Oliver Capital Management provides the best investment options available today at reasonable and competitive rates. In addition, we will review and monitor all contractual relationships with Plan trustees, administrators and record-keepers.
Initially, we work with a Plan’s legal advisor to implement a structure that clearly defines fiduciary activities and responsibilities with respect to a pension plan. This clear delegation and allocation of fiduciary responsibilities is a critical component in enabling directors and officers to mitigate their personal fiduciary liability. Furthermore, we will implement fiduciary policies and procedures consistent with ERISA.
As part of our offering and on a regular basis, we will provide reports to senior management and/or directors of the Plan’s corporation.
Alternate Fiduciary Status: Independent Fiduciary
Occasionally, Plan may need a higher level of fiduciary expertise and investment management skills. Corporate directors and officers may also seek OCM’s expertise and experience in this regard. Our Independent services may include:
- Overseeing investment accounts
- Approving plan expenses for service providers
- Monitoring asset pricing and valuation processes
In the above scenarios, OCM acts as an independent, conflict-free fiduciary operating solely in the best interests of the plan participants.
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