broken arrow public schools 403(b) plan

Broken Arrow Public Schools 403(b) Plan

RFP Results and Next Steps

The 401(k) Concierge | 11919 Jones Maltsberger | San Antonio, Tx 78216P: (512) 293-5317 | F: (210) 404-0088 | E: akalylor@401kconcierge.com |

www.401kConcierge.com

Allison Kaylor – Managing Partner

The 401(k) Concierge. | 11919 Jones Maltsberger | San Antonio, Texas, 78216P: (512) 293-5317 | F: (210) 404-0088 | E: akaylor@401kconcierge.com | www.401kConcierge.com

*Goals of RFP• Review existing program with CPI (current

TPA)• Review the investments offered and

benchmark for reasonableness• Audit federal and state required processes• Review vendor pricing for reasonableness• Review education and services to BAPS

and participants

The 401(k) Concierge. | 11919 Jones Maltsberger | San Antonio, Texas, 78216P: (512) 293-5317 | F: (210) 404-0088 | E: akaylor@401kconcierge.com | www.401kConcierge.com

*Discussion of Results

• CPI’s platform is expensive compared to other platforms, and CPI’s plan sponsor and employee education services do not meet expectations

• Current investment funds’ 12b1 fees are higher than need be; fund expenses need to be reduced

• A master record-keeper is needed for frozen/orphaned assets

• Ongoing oversight is needed for fund expenses; fund performance; and recordkeeping and compliance activities

The 401(k) Concierge. | 11919 Jones Maltsberger | San Antonio, Texas, 78216P: (512) 293-5317 | F: (210) 404-0088 | E: akaylor@401kconcierge.com | www.401kConcierge.com

• New Provider: ING (BAPS RFP Review Committee’s recommendation)

• New Provider: $25,000 lower over all cost. Fund expense ratio reduced from average of 1.23% to 1.07%

• Use a bundled platform which includes Master Record-keeper services

• Transition current assets to new vendor without liquidation, allow current participants to use old line up or new offerings

• Add a new fund selection of high quality/lower cost funds• Formalize a participant education program with group sessions

and one-on-one help.• Education with ‘state of the art’ materials

*Recommendations

The 401(k) Concierge. | 11919 Jones Maltsberger | San Antonio, Texas, 78216P: (512) 293-5317 | F: (210) 404-0088 | E: akaylor@401kconcierge.com | www.401kConcierge.com

*Next Steps• Retain a true advisory/consultant group to replace current

“broker” arrangement. This will give fiduciary protection and true advisory help to the District and the participants

• Add a Plan Review Committee, formalized by charter to monitor all aspects of the program and implement enhancements as needed

• Implement conversion plan to new Master Recordkeeping program with high quality investments at a more reasonable price

• Rollout enhanced education/advice to help the participants get the most out of the program