How did you choose your broker?
Rizor & Nolan Advisors created this informative email series to give you advice on how to manage your health and welfare benefit plans, and to tell you about the advantages of working with our expert team.
Many employers choose a broker for the wrong reasons.
A lot of people make decisions about their service providers or their plan brokers based on non-professional connections – choosing a person who is a relative, a golfing buddy, or a friend, for example.
Under ERISA, these are not adequate reasons for hiring and selecting a broker. In fact, hiring a plan broker for such reasons is actually prohibited by ERISA and could cost you significant penalties and fines.
It’s a best practice to evaluate your broker every three years.
Not only do you need to choose a plan broker for the right reasons, but ERISA states that all providers to a plan including the broker should be evaluated according to
predetermined criteria on a regular basis.
These evaluations should be done in a formal manner and also need to be well documented.
Important Criteria for Evaluating your Plan Broker:
• Their education
• Their level of experience
• Their workload / experience as it relates to plan size
• Ask questions such as, “How many other plans do you currently have that are similar in size and scope to our plan?”
We specialize in giving small to mid-market employers a level of quality and expertise – with administration and protections usually only available to Fortune 500 companies.
Rizor & Nolan Advisors is the only firm that establishes, implements and administers a comprehensive benefit plan process designed to:
- improve plan quality,
- lower plan costs,
- protect you from governmental investigations and audits,
- protect you from penalties and fines, and
- protect you from civil actions.
Rizor & Nolan Advisors becomes a contractual operational fiduciary to your plan and is subject to the same liability as internal plan fiduciaries.