EFA’s standard form of engagement to provide fiduciary services is a two-step process. First, EFA conducts an “ERISA Compliance Review,” which includes document, operational and fiduciary compliance reviews for the three preceding plan years. Second, based on the results of the ERISA Compliance Review, EFA and the plan sponsor negotiate a flat monthly or quarterly fee arrangement as part of a fiduciary services agreement pursuant to which EFA acts as the plan’s “Administrator” as described in ERISA Section 3(16) and is engaged as legal counsel to the plan’s “Named Fiduciary.”
EFA undertakes this fiduciary role either by (1) an amendment to the plan that designates EFA as the plan’s “Administrator,” or (2) the “Named Fiduciary’s” delegation of such authority directly to EFA, or, alternatively, by its appointment of EFA to membership on a pre-existing administrative committee established by the plan’s “Named Fiduciary” for this purpose.
EFA can also be engaged in a non-fiduciary capacity to provide fiduciary consultations and training services including the development and implementation of an RFP either for the purpose of replacing an existing service provider or conducting a survey of the current marketplace for vendor services.
If EFA has not been engaged to act in a fiduciary capacity, Philip J. Koehler, Esq., EFA’s CEO, can be engaged to act as legal counsel to the plan sponsor or to the “Named Fiduciary.”