Defined Benefit Plans

Newport Capital Group can serve as both an ERISA 3(21) and ERISA 3(38) Appointed Fiduciary.

A fiduciary is an individual authorized by an express or implied agreement, like a trust or a defined relationship, to act with a high duty of care on behalf of another person, a beneficiary. The fiduciary must make prudent and informed decisions based on all available and material information, acting first and foremost on behalf of the beneficiary. Fiduciaries are required to avoid conflicts of interest and must place the interest of the beneficiary ahead of their own. Fiduciaries must also act in good faith, maintain confidentiality, and communicate by disclosing all pertinent information through the due diligence process.

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The plan’s Investment Policy Statement (IPS) is a written plan document that establishes guidelines for the investment of the plan’s assets. Newport Capital Group will develop a written IPS for defined benefit plans, it includes plan responsibilities and investment targets that are used to monitor the progress of the plan’s funding status. The IPS lays out objectives, policies, and the roles and responsibilities of the Investment Committee; additionally, it monitors your investments and the plan’s performance. The selection of a plan’s investment options is one of the most important decisions that a retirement plan committee will make. Not only do the plan’s investment options have to offer enough diversification to help participants meet their long-term retirement goals, but they also have to be selected and monitored in the best interest of the participant.

The IPS includes long-term strategic asset allocation targets for the major asset classes that Newport Capital Group uses for pension clients. The targets are developed from the results of the initial plan asset and liability study that is conducted during the onboarding phase for new clients. Additionally, Newport Capital Group uses return, risk, and correlation measures to develop broadly diversified portfolios for all of our clients.

Newport Capital Group provides clients with the fiduciary support needed to operate their plans. This begins with an onboarding audit, where we review plan documents, services agreements, etc. for audit preparedness. In addition we keep committees informed of Department of Labor regulatory updates that could affect plan governance. We also provide legislative updates and monitor court cases that impact retirement plan fiduciaries.  We house all important plan-related documentation in an online fiduciary vault for organization and easy access. Clients are reminded of key compliance dates each quarter so all plan responsibilities can be addressed on a timely basis. We also ensure companies have prudent policies in place to document the methodologies used to make plan decisions. In addition, we assist companies in performing their required due diligence by conducing Requests for Information and/or Request for Proposals to evaluate existing service providers against competitors in the marketplace for cost and quality of services, usually due to service issues.  For terminated plans, Newport Capital Group will undertake a provider searches for rollover IRA companies and annuity providers.