Hollis Lamon Describes How He Keeps Up With Fiduciary Standards

Hollis Lamon of Lamon & Stern, Atlanta explains to PLANADVISER that "Serving a retirement plan is a long-term commitment. Keeping up with the fiduciary standards isn’t easy, you’ve got to stay on top of it."

"First, many plan sponsors don’t know the difference between a 3(16), a 3(21) or a 3(38) fiduciary and the functions each one provides. We want to make sure the plan sponsor understands these roles." 

Lamon continues with some more key points:

• The first thing we do is determine the comfort level of the plan sponsors and what goals they have for their plan. Do they want us to advise participants? Are we acting as a 3(21)? Do we outsource to Iron Financial as a 3(38)? Do they want to take some responsibility for investment decisions, or do they want to completely outsource investment selection and monitoring?
• Most of the plan sponsors out there we have found are having trouble making sure that the notices and all the right summary plan descriptions and notices of change of investment options to participate are being sent not only to their active employees, but to the employees who have moved on and still have remaining balances with the plan.
• As far as 3(16) goes, we’ve got Pension Financial Services, and they are great—a third-party administrator (TPA) that we use a lot that will step in to handle the administrative functions of a 3(16), overseeing the mailings and the notices.

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IRON Financial - Plan Profile

IRON Financial : Plan Profile

Plan Investments & Balances

Plan sponsors are able to view a summary of all approved investment options and the overall balances.  For easy reference the available plan investments have built-in informational links to the investments.

Quarterly Fiduciary Investment Review Package
This is a quarterly review that monitors fund performance on multiple levels and details actionable items, if any, for the coming quarter.

The report insures that the investments in the plan are in accordance with guidelines detailed in the Investment Policy Statement. 

Investment Policy Statement

We work with the plan trustees and investment committee to review or develop a comprehensive Investment Policy Statement (IPS).  The IPS provides the guidelines and standards utilized in the selection of the plan's investment alternatives asset classes, and provides a basis for the periodic evaluation of the performance of these investment alternatives.  We also aid the client in selecting the actual funds that will be offered within each asset class.  As part of our investment services offering, we also screen and develop a diversified range of investment alternatives to meet your participants' needs (with model portfolio allocation if applicable). 

Investment Monitoring

We provide our clients ongoing support with an Investment Policy Monitoring (IPM) report comparing the plan's investment alternatives offered to the standards outlined in the IPS, and measured against their corresponding asset class peer groups.  As needed, we guide the client through the process of replacing investments and communicating these changes to plan participants.

Hollis Lamon
Lamon & Stern
Atlanta, Georgia

Contact Hollis Lamon of Lamon & Stern today for all your retirement planning needs! 770-951-8411

A Letter To Our Planned Sponsor | ERISA

Dear Plan Sponsor,

As a Plan Sponsor of a qualified retirement plan, we know that you are being constantly bombarded by representatives in our business who insist that they can assist you with your Retirement Plan.

As a broker dealer Lamon & Stern, Inc. can and will help you and your company by providing a thorough review of your existing plan including your investment policy statement and your fiduciary practices.

Most Plan Sponsors are not aware of all the fiduciary responsibilities and requirements that have been imposed by ERISA (Employee Retirement Income Security Act).  ERISA was enacted to protect participants and beneficiaries in retirement plans and Plan fiduciaries must follow ERISA's standards properly to perform their duties to avoid potential liability.  I have enclosed a pamphlet, "The Success Quiz", which will allow you to review your current practices and determine the level of your fiduciary success.  It is not uncommon for Plan Sponsors to score poorly on this quiz; which means that you have some weakness that needs to be corrected to improve your fiduciary practices.

The "Success Quiz" is a brief overview of the requirements that a fiduciary should be following in order to meet the requirements imposed by ERISA.  If you will take the time necessary to review this quiz, we will be glad to setup a mutually convenient time to review your results and provide you with a more extensive Fiduciary Handbook which will help you in establishing and maintaining a well thought out and compliant fiduciary program.  In addition, we will also review the new regulations which have been released by the Department of Labor aimed at helping plan sponsors know and understand the various fees that are associated with their retirement programs.

Lamon & Stern works very closely with Pension Financial Services, Inc. ("PFS"), a local consulting and administration firm.  PFS has been providing services to Plan Sponsors throughout the Southeastern U.S. since 1982 and is certainly one of the largest firms of its kind.  PFS specializes in qualified retirement programs and the principals and consultants in that firm have over 150 years of combined experience.  As a team, Lamon & Stern, Inc. and PFS will also offer a no cost, and no obligation review of your current plan design and your fiduciary practices.

My office will set up an appointment with myself and Earle Garvin, President and CEO of Pension Financial Services to review your plan and discuss any gaps you may have in your plan's compliance with ERISA.

Sincerely,

Hollis Lamon
Lamon & Stern, Inc.

READ MORE:

• What Is ERISA
• Fiduciary Education
• Pension Financial Services