It is important for plan sponsors to understand how their plan works and how much each plan service cost. Just as an individual would keep track of their personal budget, a plan sponsor needs to keep track of their retirement plan’s budget. Simply put, those responsible for the management and oversight of employer-sponsored retirement plans must follow specific rules for operating the plan, handling plan assets and overseeing the firm(s) that provide services to the plan. This is where PSS adds value.

To fully understand your plan’s service model, you must first understand that some or all of the various services and investment alternatives may be offered by one provider (often referred to as a ‘bundled’ arrangement). While in other cases, plans may obtain services and investments from a variety of providers (often referred to as an ‘unbundled’ arrangement).

Regardless of the delivery model used by a plan sponsor, there are four essential components that must function together in order to ensure the successful administration and management of many employer-sponsored retirement plans.

Click on a section of the graph to the right to learn more.

Coordinating these components in a complex regulatory environment has made it increasingly difficult to identify the true costs associated with administering and managing employer-sponsored retirement plans. As a result of proprietary interests and hidden fees, the industry has found itself under-serviced and over-priced. At Plan Sponsor Services, we understand that the Employee Retirement Income Security Act of 1974 (ERISA) was not enacted for the well-being of financial service providers; it was enacted for the well-being of the millions of participants and their beneficiaries that depend upon its enforcement.