Broker Check

Vendor Management


Conduct Comprehensive Plan Benchmarking

When plan assets are used to pay plan expenses, it is imperative that fiduciaries understand that the fees assessed relative to the services provided are fair. The Department of Labor provides no fee guideline other than stating that fees must be “reasonable.” To determine the reasonableness of plan fees, the services provided and fees charged need to be clearly defined and benchmarked against other plans within the market. By documenting this process, plan fiduciaries can demonstrate they have carried out their duty to assess the reasonableness of plan fees.

Manage Vendor Search

When a retirement plan is in need of a new service provider (e.g. record keeper, third party administrator, etc.) there are a number of factors for consideration. For example, the cost of services, the level of services delivered, and a service provider’s ability to meet the needs of the retirement plan should be evaluated. RedStone Advisors helps the client document its due diligence process by obtaining price quotes from several service providers, formalizing the evaluation process, and providing Redstone Advisors’ recommendation in writing.

Monitor Service Providers

After a service provider for the plan has been selected, the plan fiduciaries have a responsibility to monitor the service provider to ensure that fees and services remain competitive. RedStone Advisors remains abreast of changes in the retirement plan industry and is proactive in suggesting changes in service providers when it will benefit the plan participants. Periodically, RedStone Advisors conducts plan benchmarks which help to formalize the process of monitoring service providers.

Assist in Coordinating Vendor Sponsored Education

Some retirement plan record keepers offer educational services for plan participants. RedStone Advisors will work closely with the investment committee to coordinate educational events with the plan record keeper that are consistent with the plan’s education policy statement.