SERVICES: Corporate Pension & 401(K) Management
SERVICES: CORPORATE PENSION & 401(K) MANAGEMENT
As the Trustee of your company’s 401(k) plan, the well-intended decision to provide the benefit of a retirement plan to your employees is admirable, but as a Trustee, you and your company are exposed to severe monetary penalties for failing to meet any of the responsibilities you’re held accountable for.
Having a Corporate Pension/ 401K) plan not only places you and your company under regulatory surveillance by the Internal Revenue Service (IRS) and the Department of Labor (DOL), but also exposes you to the auditing authority and power each wields.
Additionally, you must be prepared for the threat of lawsuits and litigation from both current and former plan participants regarding plan investments and their “retirement readiness”.
It’s time to eliminate these distractions so you can focus on what you do best - the successful management of your company
YFS – We are the Solution
When YFS is hired by the Trustee(s) to manage a Corporate Pensions/401(K) plan, the burdens of fiduciary responsibility and exposure to liability are automatically shifted to us.
Building a career and company (YFS) focused on specializing in Pension/401(K) management started with my acceptance into MetLife’s prestigious Qualified and Non-Qualified Plan training program – MetLife was the first life insurance company to establish a 401(K) platform for implementation.
Seeking to further my education, I earned my certification as a Chartered Retirement Plans Specialist (CRPS®) from the College for Financial Planning. Soon after, I attended the Center for Fiduciary Studies where I earned my certification as an Accredited Investment Fiduciary (AIF®). Both certifications are recognized by the US Securities & Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) and both carry substantial annual Continuing Education (CE) credits to maintain.
Over years of experience in the financial/securities industry, brokerage and insurance firms began limiting the service and support I could provide to a Pension/401(K) client in order to insulate and protect themselves from exposure to litigation. Recognizing this, I took the exam to become licensed as an Investment Advisor Representative (IAR) and filed Young Financial Services, LLC as a fee-only independent fiduciary RIA with FINRA and the Florida Department of Financial Services.
My packet was approved by FINRA and the Florida Department of Financial Services which resulted in my ability to provide clients with an exclusive level of elevated service by acting as a 3(38) fiduciary for their Pension/401(K) plan.
A 3(38) fiduciary may only be a bank, an insurance company, or a registered investment adviser (RIA) subject to the Investment Advisers Act of 1940.
As the 3(38), we create your plan’s customize Investment Policy Statement (IPS). By following your Plan’s IPS, YFS assumes the responsibility of selecting, monitoring and replacing investments. This automatically insulates Clients (Trustees) and the Company from potential liabilities (and financial penalties) emanating from investment decisions by YFS.
Under ERISA code §404(a) – as the 3(38) fiduciary, I have a duty to serve solely in the interest of plan participants and meet the “prudent man” standard of care.
Our role as the plan’s 3(38) investment fiduciary is an important component is the process of plan management developed using the audit formats from both the DOL and the IRS. From these audits, the plan management process I designed not only acts as a counter measure against penalization by the DOL or IRS, but inherently creates a better plan.
Every client is issued a Service Binder outlining actions and services we’re performing and the quarterly window of these events.
These include discussions with Trustees covering overall plan service, participation levels, deferral percentages, loans, non-discrimination testing, enrollment and communication strategies, and any other items of relative importance; offering a performance analysis at least annually of investments utilized by the plan versus benchmarks and/or peer groups; monitoring funds selected by the plan sponsor for style drift and correlation with fund investment. A review of plan fees, updated documents, investments, review and actions taken to support fiduciary obligations, and annual plan review which includes an analysis of fees and investment performance. We also update the IPS (if necessary) to ensure compliance with any regulatory updates, etc.
The DOL focuses much of their attention on participant support. To shield against penalization, we developed a robust support program to maximize the chances for an employee/participant to achieve their investment and retirement goals. We accomplish this with a layered system including proprietary audio-email investment training program, both group and individual participant meetings and 24/7 advisor access for individual support. If a company has multiple locations around the State or around the Country, we’ll coordinate with the plan provider to send enrollment and/or education teams for onsite meetings. F Fiduciary Excellence (SAFE®) analysis program from fi360®.rm
Because I am confident in our program and the level of service and administration YFS provides, the Service Binder also includes a signed guarantee to cover all fines incurred during an audit by the Department of Labor.
As an example, a Trustee’s inability to produce an Investment Policy Statement carries a minimum Fifty Thousand dollar fine ($50,000).
My guarantee legally binds YFS to the financial penalty. We’ve never incurred a claim against this guarantee.