Pension Trustees
Problem: Trustees of a pension plan came to us with issues regarding the management of their employees’ pension. They had been managing the plan on their own and had never developed an appropriate investment policy guided by the needs and goals of the participants and one that followed ERISA guidelines (Prudent Expert Concept).
- Determining what level of risk the pension plan had the ability to take.
- Identifying a reasonable return expectation based on the plans ability to take risk.
- Creating a detailed investment policy statement.
- Reducing the risk of the plan holdings by including many new asset categories in their policy.
- Targeting the payout of benefits to employees likely retirement dates.
The benefits to the client:
- Significant reduction of risk to the pension’s beneficiaries.
- Trustees now had an investment process that conformed to the ERISA Prudent Expert theory.
- Personal liability to the trustees was reduced.
- Employees could feel more confident that their pension values were invested appropriately
Stonegate Wealth Management ’s highly experienced professionals, including partners Thomas J. Geraghty, Jr., CPA, CFP, Steve Craffen, MBA, CFA, and Craig Marson, JD, CPA, solve complex financial challenges and provide counsel for the pressing financial issues confronting their high net worth clients. They have deep knowledge and experience in taxes, estate planning, investment management and divorce settlement counseling. The firm manages $185 million in assets. Tom Geraghty, tomg@stonegatewealth.com, office , 201-791-0085, cell 908-347-3032
Trends from Ink&Air -- Editor: Lisbeth Wiley Chapman, beth_chapman@inkair.com, 508-479-1033
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