Getting the Most out of Year-End Plan Reviews

Year-end plan reviews are just around the corner. In a Dec. 6. Session of the ASPPA Winter Symposium, Missy Matrangola, QKA, QPA, Consultant with Atlantic Pension Services, Inc., offered ideas on how to get the most out those reviews.

Why Do a Plan Review? 

A plan review will be helpful in the following ways: 

• It will solidify the relationship with client.
• You will learn more about your client’s business. 
• It offers opportunities to:
  • stop problems before they occur; and 
  • educate client on law changes that may affect their plan.

Who to Invite

Following are parties who can be invited to a plan review. Caveat: keep in mind that options vary according to how a plan is set up. 

• advisor 
• recordkeeper 
• client 
• relationship manager 
• third party administrator
• owner/manager 
• plan administrator 
• plan sponsor 
• trustee 
• plan administrator

Running a Plan Review Meeting

One can keep a plan review meeting on track by taking the following steps:

• Set an agenda. Some standard agenda Items include review of current: 

1. the plan investment platform;
2. plan design;
3. plan testing;
4. the plan document; and
5. changes in retirement plan law. 

Sample agenda:

• Introduction of all parties 

1. Advisor to review investment results and discuss benchmarking 

2. Client relationship manager to review plan participation, deferral rates, loan and distribution statistics

3. TPA to reviews current plan design, results of plan testing, and upcoming retirement plan law changes 

4. Group to discuss options to increase plan participation

• Hold a meeting to assign agenda items. In that meeting: 

1. Review the draft agenda with all parties.
2. Determine the order of items. 
3. Decide who will do what and time necessary.
4. Decide who will open and close the meeting.

• Review topics to be discussed.
• Set estimated times.
• Be prepared with appropriate information. 
• Remember that some information doesn’t need to be discussed at an annual meeting. 
• Before the plan review meeting: 
• Prepare your materials so you have what you need. 
• Review your material.
• Practice what you will say if you have a difficult topic to address.

Questions to Anticipate 

Following are some questions to anticipate at a plan review meeting.

• Is this still the right plan for our company?
• We want to put more money in the plan; can we do that? 
• If we want to do a match what is average now? 
• We keep failing our ADP test; can we stop that? 
• Are our participants taking too many distributions; should we change our policy? 
• How many loans were taken from our plan last year? Is this average? 
• Should we allow loans? 
• Our participants are not enrolling in the plan; how can we help with that? 
• We have a lot of terminated participants in our plan; can we get rid of their balances? 
• We want to change our eligibility; can we do that? 
• What are the trends in vesting? 
• Do we need to look at other recordkeepers? 
• Do we need to do something special about cybersecurity?