Educational Institutions

Client:
Prominent University

Background:
The University had two 403(b) recordkeeping vendors and was offering over 200 investment choices including:

  • Fixed annuities
  • Variable annuities
  • Mutual funds

They had just formed a committee responsible for overseeing the plan and the plan investments.

Concern:
Recently advised by their audit firm about their fiduciary oversight role as it related to their investment choices, and faced with the challenges of complying with 403(b) regulations, the committee wanted a more formal governance structure.

The University had in-house investment expertise, but no proficiency on unique annuity structures or revenue sharing fee structures.

Resolution:
FIA was hired and guided the committee through a fiduciary governance process including:

  • Committee Charter
  • Investment Policy Statement
  • Fiduciary Education
  • Investment Due Diligence
  • Recordkeeper Fee Negotiation

Ongoing Success:
The end result:

  • Significantly streamlined investment offerings
    • Fewer funds offered, allowing a better participant experience
  • Strong communication campaign
    • Created awareness and appreciation of the plan with faculty and staff
  • Improved fiduciary governance process
    • The committee utilizes FIA’s Fiduciary Governance Calendar and The Fiduciary Trail®