OUR ADDED VALUE
Tidepool leverages the skill and expertise of outstanding affiliate partners for many company functions. But as the 402(a) Named Fiduciary, we also add our own unique expertise to the equation by monitoring Plan performance with respect to changes in the financial markets, and assuring compliance under all areas of ERISA:
The concept of a pooled plan is that multiple single-employer 401(K) plans are integrated as a functional single entity for administrative and investing purposes. This requires integration of each new plan into the pooled plan. Integration involves valuing the incoming assets (particular fixed income assets) and integrating data and back-end functions. Of particular concern are the different types of 401(k) plans: safe harbor, non-safe harbor, and profit-sharing. Each plan has different provisions that need to be flexibly adapted to a single plan document. Having worked in mergers and acquisitions, our team is sensitive to all these issues and can perform them flawlessly.
ERISA imposes critical duties on plan fiduciaries:
First, to prudently select investment alternatives offered as plan options, taking care to avoid confusion and obfuscation;
Second, to regularly monitor the offered investments and remove under-performing investments–particularly in a volatile market where conditions change rapidly;
Third, to provide sufficient information regarding investment alternatives to allow an individual managing his or her account to make informed decisions concerning account management; and
Fourth, upon request, to provide a statement of value of a share or unit of each designated investment alternative as well as the date of the valuation.
We are experts at dealing with these fiduciary requirements, bringing peace of mind to our plan participants that their ERISA rights are fully covered.
A principal focus of Tidepool is understanding and managing liquidity risk. Liquidity failure is the one failure that a portfolio, company–indeed, an economy–cannot long survive. From an ERISA standpoint, to “minimize the risk of large losses” is to carefully manage liquidity risk.