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L. Rita Fiumara, First Vice President, Investments, UBS Financial Services, also told attendees at the PLANSPONSOR National Conference in Chicago, Illinois, that a NQDC plan system administrator should have strong technical support and be able to guide plan sponsors through legal and regulatory rules. Providers should have a lead manager on their teams working with plan advisers. Open architecture will facilitate customization of plan design, and support of multiple accounts will ensure sponsors can separate accounts by class year, money types, or distribution options. Geoff Gottlieb, Senior Managing Director at EWM LLC, contends that the value of a NQDC plan depends on investing in the best investments. Sponsors should not be locked into a single provider, and should review investment selections ongoing. Investment selections should provide maximum value for employees, but minimum cost for employers. Michael G. Goldstein, SVP and National Director at Clark Consulting, says if a provider doesn’t offer various investment choices, don’t use it. Vince Morris, Vice President at Bukaty Companies, and NRP member firm, says plan fiduciaries should have regular meetings with an Investment Policy Statement in place. The IPS should have criteria for the removal of investments. According to Morris, the typical funding for NQDC plans is 70% Company-owned Life Insurance (COLI), and 30% mutual funds. Gottlieb says he thinks swaps are better than COLI because sponsors can anticipate the value and they are cheaper, where they cannot count on tax-free death benefits to cover the costs of the plan.
L. Rita Fiumara, First Vice President, Investments, UBS Financial Services, also told attendees at the PLANSPONSOR National Conference in Chicago, Illinois, that a NQDC plan system administrator should have strong technical support and be able to guide plan sponsors through legal and regulatory rules. Providers should have a lead manager on their teams working with plan advisers.
Open architecture will facilitate customization of plan design, and support of multiple accounts will ensure sponsors can separate accounts by class year, money types, or distribution options.
Geoff Gottlieb, Senior Managing Director at EWM LLC, contends that the value of a NQDC plan depends on investing in the best investments. Sponsors should not be locked into a single provider, and should review investment selections ongoing. Investment selections should provide maximum value for employees, but minimum cost for employers.
Michael G. Goldstein, SVP and National Director at Clark Consulting, says if a provider doesn’t offer various investment choices, don’t use it.
Vince Morris, Vice President at Bukaty Companies, and NRP member firm, says plan fiduciaries should have regular meetings with an Investment Policy Statement in place. The IPS should have criteria for the removal of investments.
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