QUESTIONS YOUR 401(k) PROVIDER IS AFRAID YOU WILL ASK

1. Is your firm registered with the SEC as an investment adviser?  If so, provide all disclosures required under those laws (including Part II of Form ADV).  c)
    
2. Will your firm become out plan's Registered Investment Advisor?
    
3. If you are hired, will your firm acknowledge, in writing, that you have a fiduciary obligation as an investment adviser to our plan, and that you will specifically provide investment advice in selecting, monitoring, and replacing money managers in our investment menu?  If yes, provide a copy of the agreement that documents the fiduciary responsibilities your firm is accepting on our behalf.  a)
    
4. Can your firm provide a trading platform that has extensive access to no-load and load waived mutual funds?  If yes, provide a listing of the funds currently available including their ticker/symbol and the necessary information to review your proposed trading platform. 
    
5. What organization holds custody of the assets and what are their fees?
    
6. Will your firm commit to provide an investment menu that is “revenue neutral” with respect any compensation your firm receives?  Are all 12b1, sub-transfer agent, and shareholder servicing fees credited to the plan?  b)
    
7. Do you or a related company receive any payments from money managers you recommend, consider for recommendation, or otherwise mention to the plan for our consideration?  If so, what are these payments and what is the extent of these payments in relation to your other income?  a)
    
8. Will you prepare a customized Investment Policy Statement (IPS), manage, and document our investment review process to ensure that the criteria in this IPS are met?  If yes, please provide a copy of a specific client’s IPS that you have prepared and provide evidence of how you have managed your client’s adherence to this IPS.
    
9. Will your firm recommend diversified, asset-allocated portfolios?  If yes, does your firm have a five-year track record for managing these allocations?  Provide specific client examples in use today.
    
10. Describe, in detail, any processes you utilize to initially deliver and maintain a high rate of employee participation, average deferral and utilization of asset-allocated portfolios by our employees?

Sources:
a)  DOL/SEC Fact Sheet Selecting & Monitoring Pension Consultants–Tips for Plan Fiduciaries (May 05)
b)  DOL Advisory Opinion 97 – 15A
c)  DOL Fact Sheet Tips for selecting & Monitoring Service Providers for Employee Benefit Plan (May 04)