TDF Fiduciary Documentation

TDF consulting fees depend on plan size, current documentation status, and scope of other services needed. Plans with existing documentation may need only periodic review support, while those building processes from scratch require more comprehensive engagement. We provide transparent pricing after understanding your specific situation and never charge hidden fees or unexpected additional costs.

Three factors distinguish our approach. First, we generate over 90% of revenue from retirement plans, making us true specialists rather than generalists. Second, we serve as named 3(21) or 3(38) fiduciaries, backing recommendations with direct liability protection. Third, our technology-driven Virtual 401(k) Fiduciary File system maintains documentation organized for audit defense, covering all individual investment options within your plan's TDFs.

Initial TDF evaluation and documentation typically requires 60 to 90 days, allowing time for data gathering, analysis, Investment Committee review, and documentation finalization. A new report from industry researchers shows that proper evaluation over a longer period produces better outcomes. Ongoing monitoring then follows quarterly cycles. We can accommodate accelerated timelines for urgent situations.

The DOL expects documentation showing you established an objective process for comparing and selecting TDFs, understood the fund's investments and asset allocation glide path, reviewed the fund's fees and expenses, considered whether custom options includes component investments not managed by your TDF vendor would better fit your plan, developed effective participant communications, and maintained records of how you reached decisions on individual investment options. We help ensure all elements are properly documented.

Plan fiduciaries should monitor funds at minimum on an annual basis, with many experts recommending quarterly monitoring for performance tracking. Reviews should examine whether there have been significant changes in any criteria you considered when selecting TDFs, including investment strategy changes, management staff turnover, fee modifications, or shifts in participant demographics. We provide quarterly monitoring support to help you stay current.

A "to retirement" glide path reaches its most conservative investments at the target retirement date, while a "through retirement" fixed date approaches continue shifting after the approximate date. As the fund nears retirement years, asset allocation becomes more conservative to reduce volatility. Neither approach is inherently better; appropriate choice depends on your plan participants' characteristics. Documenting why your selected glide path suits your workforce is essential.