VENDOR OVERSIGHT AND EVALUATION
ERISA Fiduciary Administrators LLC (“EFA”) periodically evaluates each vendor relative to the following key areas of Plan managment:
VENDOR’S CONTRIBUTION TO THE PLAN’S LEGAL COMPLIANCE
[ ] Maintaining the tax-qualified status of the plan in re: Internal Revenue Code Sec. 401(a) et seq., the regulations thereunder and all official guidance published by the Department of Treasury;
[ ] Maintaining the plan’s compliance with all applicable provisions of Title I of ERISA, the regulations thereunder, and all official guidance published by the U.S. Department of Labor;
[ ] Maintaining the plan’s compliance with the requirements of an “ERISA 404(c) Plan” where applicable;
[ ] Adequacy of the plan’s summary plan description, any summary of material modifications and all other required participant disclosures, including fee disclosures;
[ ] Consistency with the plan’s Investment Policy Statement.
VENDOR’S CONTRIBUTION TO PLAN’S OPERATIONAL EFFICIENCY
[ ] Alignment of services for which the vendor was engaged and the administrative needs of the plan;
[ ] Eliminating duplicative or otherwise unnecessary services with appropriate fee reductions;
[ ] Quality of vendor’s work product regarding both accuracy and timeliness;
[ ] Coordination of vendor’s work product with other vendors, as needed.
VENDOR’S INDEPENDENCE/ORGANIZATIONAL INTEGRITY
[ ] Obtain documentary evidence to establish vendor independence and, in particular, the absence of apparent or actual conflicts of interest between the vendor, all other vendors, all plan fiduciaries and the plan sponsor?
[ ] Review vendor growth history, client base, client turnover, stability and expertise of vendor management, existence of reasonable succession planning, and policies of continuing education for staff.
REASONABLENESS OF VENDOR’S SERVICE AGREEMENTS AND FEES
[ ] Review the vendor’s administrative service agreement and fee arrangement with the plan, and any revenue sharing agreements that the vendor has entered into with mutual fund companies or insurance companies performing services for the plan;
[ ] Review vendor’s annual ERISA Sec. 408(b)(2) fee disclosure information and vendor supplied data for completion of Schedule C to Form 5500, verify compliance with disclosure requirements (pursue additional information where disclosures are inadequate), track total fees received by payer, audit vendor’s method of accounting for any indirect compensation, including 12b-1 fees, sub-transfer agency fees, shareholder service fees and other forms of revenue sharing, and evaluate reasonableness through an objective benchmarking evaluation process;
[ ] Coordinate with the Plan’s responsible investment fiduciaries to establish that any mutual fund share classes offered under the plan that have revenue sharing features were selected after evaluating alternative institutional share classes and that the inclusion of retail share classes among the plan’s investment fund options is consistent with the plan document, the summary plan description and the plan’s investment policy statement.