ESOP 401(k) Plan
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401(k) Plan Consulting

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SES Advisors was hired to consult for an ESOP company’s 401(k) plan. The ESOP company had specific items it wanted to incorporate into the 401(k) plan:

Incorporate ESOP values into the 401(k) statements or participant website
Provide full revenue disclosure of fees
Supply useful online tools and increase onsite employee education
Deliver simple to understand, managed accounts for participants
Use a flexible investment architecture with limited proprietary requirements
Lower overall plan cost, if possible
1

Step One

SES Advisors worked with the current 401(k) provider to disclose current 12b-1, Sub TA, shareholder and other internal fees
Installed an Investment Policy Statement
Consulted with the company to review the current investment options to streamline the fund lineup to make it easier for the employees to understand
Added passively managed funds and replaced funds that didnt meet the IPS standards
Reviewed all the options available under the current provider that were appropriate for the Qualified Designated Investment Alternative and changed the default option from cash to a balance fund
Rolled out the fee disclosure and changes to the plan in a group presentation for all employees
2

Step Two

Conducted a Request For Proposal process to document that plan fees are reasonable and competitive
Reviewed eight providers that could offer the services that the client was looking for in its dream 401(k) plan
Reviewed the results with the client and the current 401(k) provider; current provider could not provide all the services that the client was requesting and the RFP found other, less expensive 401(k) providers that could
3

Step Three

Documented all the changes and processes and loaded all the plan info on clients online portal

Conclusion:

Employees receive ESOP values on the 401(k) statements and participant website
Reduced the conflicts of interest attached to the 401(k) plan
Built a new fund lineup that offers more diversification with fewer options and designed four custom portfolios for the employees to choose from
Increased employee education through onsite meetings, webinars, online tools and individual investment advice
Reduced the expenses paid by the employees from 1.05% to 0.73%without adding expenses to the company

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