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Helping a Manufacturing Firm Meet and Understand Their Fiduciary Duties

The Client:
Manufacturing firm with a $40 million 401(k) and profit sharing plan

Challenge:
Meeting fiduciary responsibilities regarding the investment monitoring and selection process

Background:
When you have worked with a partner for more than 40 years, it can be a problem if they don’t deliver upon expectations. The manufacturing firm found itself in this exact predicament. With the financial future of its employees at stake, the firm needed to find a new plan administrator. The new administrator had to be able to help the firm meet fiduciary duties regarding the investment monitoring and selection process.

The Solution:
GCG conducted a plan needs assessment and researched four competitors. GCG looked for companies that could deliver excellent service while saving the firm money. The firm selected a service provider that saved them a significant amount in annual expenses.

This success led the firm to hire GCG as its plan investment advisor to provide fiduciary support and services. In this role, GCG provided three core functions:
– Reassess the firm’s investment menu and put in place selection and monitoring criteria
– Provide a quarterly monitor report to help the plan trustees meet their fiduciary duties
– Establish an education program that increased plan participation while providing planning assistance to retired employees

The case study is for illustrative purposes only. As situations are unique to each client, results and/or outcomes will vary and there is no guarantee of future results.

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