the Department of Labor unveiled newrules for pensions, 401(k)s, IRAs and other ERISA plans.

This is not the case.

Nor do most realize the scope of their re-sponsibilities. Having third-party profes-sionals in various positions such as planadministration or an investment providerdoes not relieve the plan sponsor of the fi-duciary responsibilities. They are muchbroader than that.

This is what Cornerstone’s Plan SponsorConsultant Program does. Cornerstone hasdeveloped a consulting service that helpsplan sponsors cut through to what pertainsto them and helps them understand, imple-ment and monitor the new and old rules inthe best interest of the plan and the partici-pants.

Past performance is no guarantee of future results. Securities offered through Cantella & Company, Inc.,Member, FINRA, SIPC, Investment Advisory Services offered through Cornerstone Investment Services, LLC's RIA

Every Plan Sponsor needs to understandthese new rules, and the previous rules aswell. Whether they know it or not, they arefacing heightened scrutiny by plan partici-pants, beneficiaries, and state and federalregulators.

But who really has the time to study, under-stand, and then implement the web of newrules and regulations? …especially smalland mid-sized companies? Sure, large com-panies can dedicate full-time personnel tothe day to day administration of the com-pany plan, but what are the rest to do?

We have found that most plan sponsors wehave talked to didn’t even realize they werefiduciaries.

They thought that by having a self-directedplan, they were relieving themselves of be-ing a fiduciary.

Cornerstone’s Chief Strategist, John Riley,has earned the designation of AccreditedInvestment Fiduciary (AIF). The designationis issued by fi360, the industry’s leadingsources of insights, education, and advocacyon all aspects of fiduciary responsibility.

The Center for Fiduciary Studies is the stan-dards-setting body of fi360 and has a teamof investment professionals, attorneys, tech-nologists, and educators that share a com-mitment to promoting fiduciary standards.

Only those who have earned the AIF® Desig-nation are formally recognized by the Centerfor demonstrating a full understanding ofhow to implement those processes to helpinstitutional clients fulfill their fiduciary obli-gations.

AIF® Designees are able to use theknowledge and resources they havegained through their training to:

●Evaluate your organization’s current fi-duciary practices and recommend ac-tions that address risk areas and helpensure compliance with applicable stateand federal law

●Create and maintain a comprehensiveinvestment policy statement that docu-ments all of the processes and proce-dures that will be used to manage yourportfolio

●Analyze and optimize your portfolio’s as-set allocation strategy to better alignwith the plan or fund’s specific invest-ment objective or the demographicneeds of plan participants

●Apply objective standards for evaluatingand recommending appropriate invest-ment options for your portfolio

●Monitor and report on the performanceof your portfolio and its underlying in-vestments on an ongoing basis and rec-ommending changes when necessary

●Serve as a resource for education andassistance to help you understand andfulfill your fiduciary obligations withgreater confidence

Can someone do this for me?

No, you probably don’t. Your investmentbroker/provider takes care of the investments.Your TPA takes care of plan administration.

Here’s how you know you don’t have some-one taking care of this for you:

● Do you have a Policy and Proceduremanual?

● Do you have a fiduciary file?

● Do you have a detail, plan specific In-vestment Policy Statement?

● Do you have a fiduciary calendar?

● Do you have documentation of all deci-sions and notifications?

If your answers are no, you don’t have any-one doing this for you, and need to.

So far, maybe you haven’t been audited or sued.Why should you go through all this bother?

Worse, And the DOL was planning on

adding 1,000 new agents in 2014.

For fiscal year ended 2015, the DOL reports that67.20% of investigations “resulted in monetary re-sults for plans or other corrective action.”

I already have somebody thattakes care of this for me….

PLAN Responsibilities Snapshot

Investment ProviderProvides investments and investment choices.Usually makes no recommendations, but someInvestment Providers offer both 3(21) and3(38) fiduciary services. May supply Plan withcertain year end plan analysis including costand performance.

Plan SponsorConsultant

Aids the Plan Trustees in Compliance withFiduciary responsibilities. May provide:

Cost analysisPerformance analysisPlan with Enrollment, Education and Rolloverseminars.Fiduciary FileInvestment Policy StatementPolicies & ProceduresAnnual reviews/Audits

PLAN TRUSTEESHave full fiduciary responsibilities. Re-

sponsible for P&P, IPS, FiduciaryFile, Monitoring, Oversight of out-

side vendors, and more. Alwayshas Fiduciary responsibilities.

BrokerMay or may not make investment rec-ommendations. Provides link to InvestmentProvider. Can be various levels of fiduciary,depending on recommendations and controlover portfolios, but within the scope of theinvestments only.

TPADesigns and administers plan as wellas handles form 5500. Has limitedfiduciary responsibilities

● Self-Assessment of FiduciaryExcellence (SAFE) - A Question-naire used to evaluate the fidu-ciary process of plan sponsors.

● Consultant’s Review of Fiducia-ry Practices (CRFP) - A detailedongoing form to review the fidu-ciary process of plan sponsors

● 3rd Party Investment Review - adetailed review of the Plan’s in-vestment options from a muchdeeper perspective than just feesand performance.

● Participant Education - Enroll-ment, Education and Rolloverseminars

Services Offered ● Standardized Documents - Tem-plates and forms to create indi-vidualized essential documents.

● Continuing Education - Updatesregarding Plan governance andcompliance from our vast re-sources and team of fiduciary ex-perts.

● Fiduciary File - Templates andforms needed to stay compliantand achieve Fiduciary Excellence

● Policies & Procedures Guide - Abroad array of best practices andrules and regulations updatedregularly.

● Investment Policy Statement -Not a cookie cutter off the shelfdocument, this is customized toyour specific plan

● Who Are the Plan’s Fiduciaries?

● What are the Fiduciaries Respon-sibilities? Is it documented andacknowledged?

● Who maintains your Fiduciary Fileand What is in it?

● How do you prove you have giventhe Plan Participants the proper,ongoing investment education?

If You Can’t Answer These Questions…..

…Then you need a Plan Sponsor Consultant.

● What is a Prohibited Transaction?

● How often do you review feesand performance and can youprove it?

● Do you know the risk level of thechoices in the plan? Do the par-ticipants? How is it measured?

Past performance is no guarantee of future results.Fee based money management and Financial Planning offered through Cornerstone Investment Services, LLC's RIA

Diversification does not ensure a profit or guarantee against a loss. There is no assurance that any investment strategy will be successful.