Annie Messer, Vice President of Fiduciary Services;Pete Swisher, Managing PartnerGroup Plan Systems (GPS) is a new kind of independent fiduciary, unaffiliated with any record keeper or third-party administrator, which takes responsibility for nearly every duty under ERISA and the tax code. As the principal fiduciary, GPS oversees pooled employer plans (PEP) and handles almost every administrative aspect while listing the handful of responsibilities the employer holds. Employers need only to oversee a few key aspects, like managing payroll, providing timely participant and employee data, and obtaining a bond.
“Instead of having full legal responsibility for operating a plan, employers can just plug into a plan that we operate on their behalf,” says Annie Messer, vice president of fiduciary services.
Employers can rest assured they have a true expert overseeing their plans. From the moment an employer or its investment advisor contacts GPS, the company embodies flexibility. The aim is to design adaptable plans, allowing for many decisions at the employer level. This approach results in plans very similar to single-employer plans, providing a high degree of customization for the employers involved.
GPS works closely with different record keepers and third party administrators to deploy plans, conducting thorough due diligence and ongoing supervision to ensure these service providers offer a process for meeting all fiduciary obligations on behalf of the employers. This process ensures that the plans are effectively managed and in compliance with regulatory requirements. All service providers involved in a PEP aim to serve the employers and their employees, who are the participants in the plan.
Through a continuous supervision process, GPS monitors the plans of various employers to identify successful metrics and recurring issues. GPS conducts supervision calls with the service providers to identify and address potential gaps or errors. This consultation benefits service providers by enhancing their process efficiency and effectiveness. From the employer’s perspective, GPS reduces their obligations and the risk of errors. When issues arise, it communicates with employers and takes on the responsibility of fixing problems.
Instead Of Having Full Legal Responsibility For Operating A Plan, Employers Can Just Plug Into A Plan That We Operate On Their Behalf
When an employer was transitioning from a prior provider to a GPS PEP, they discovered previously unknown issues with their retirement plan. The client was a large company with hundreds of employees who were participants in its 401(k) plan and were behind on loan repayment schedules. Certain necessary steps, such as distributing the loans and issuing IRS Form 1099-R, had not been taken, leading to potential penalties. GPS worked with the service providers and the employer to ensure the errors were corrected so the employer could join the PEP without outstanding issues. It also partnered with the recordkeeper to implement processes to prevent future occurrences. Now, the client participates in a program where GPS handles the oversight, leaving the employer responsible only for providing the necessary data.
A seasoned team with deep expertise in the multiple-employer plan space is at the heart of GPS’s success. The team includes Pete Swisher, a leading expert in multiple employer plans and Jason Roberts, an ERISA attorney with extensive legal and compliance knowledge. Together, they, and their team, bring several decades of focused experience in various aspects of retirement plans, such as record keeping, ERISA compliance and data management. This diverse background within the retirement plan space enables GPS to collaborate effectively and determine the best approaches for managing plans.
Lessening the burden on employers by acting as a new kind of fiduciary for PEPs, GPS takes the stage as the new standard for fiduciary oversight.
