Why Hire a Retirement Plan Consultant?
Most 401(k) plans run on autopilot. They were set up years ago, the filings go out on time, and no one has tested whether the plan still serves its participants — or still protects the people responsible for it. That gap is where fiduciary risk lives, and closing it is what an independent retirement plan consultant exists to do. The question for a sponsor is not whether the plan "works." It is whether anyone can prove it does — and whether the people advising it answer to the plan or to the providers being paid by it.
What an independent consultant actually does
- Limits fiduciary liability. ERISA judges process, not outcomes. A consultant builds the documented, defensible record — fee benchmarking, an investment policy statement, committee minutes, timely notices — that protects committee members personally if the plan is ever challenged.
- Tests fees against the live market. Plans drift above market the longer they go unexamined. A consultant restates every layer of cost in hard dollars and benchmarks it against what providers would charge today — not a stale survey median.
- Gives unconflicted advice. An independent, fee-only consultant is paid by the plan, never by the providers it evaluates. The recommendation has no second master.
"But we already have an advisor"
Most plans do. The question is who pays them. A broker or registered representative is typically compensated by the products and providers on the plan — through commissions, revenue sharing, or 12b-1 fees — so the advice and the paycheck point in different directions. An independent, fee-only consultant is paid only by the sponsor.
| Broker / registered rep | Independent fee-only consultant | |
|---|---|---|
| Paid by | Providers, via commissions or revenue sharing | The plan sponsor only |
| Acknowledges fiduciary status | Often not | Yes, in writing |
| Product ties | May favor proprietary or paying funds | Open architecture — no proprietary funds |
| What gets benchmarked | Often the investments only | Every layer: recordkeeping, investment, advisory |
That last line matters. Because Regency benchmarks every layer of plan cost rather than the investment menu alone, savings can surface in places a product-tied advisor never examines. Across its engagements, Regency has identified more than $12 million in savings for plan sponsors.
The Four-Point Plan Review
Before hiring anyone, a sponsor can run a quick self-test. Four questions every plan sponsor should be able to answer — if one gives you pause, that is usually where a plan is exposed:
- Fees. Are the plan's fees benchmarked against the live market — and documented?
- Funds. Is the investment menu governed by an IPS, monitored on a set cadence, and in the right share class?
- Documentation. Can the committee produce a defensible record behind every decision?
- Independence. Is anyone advising the plan paid by the providers they recommend?
These four are also the standard Regency holds every plan it works on to. Clean answers on all four are what a well-run, defensible plan looks like; closing the gaps on the ones that gave you pause is the work.
What makes Regency different
- Structurally independent and fee-only. Compensated solely by clients — no revenue sharing, 12b-1 commissions, or ownership ties to any recordkeeper, carrier, fund family, or TPA.
- Open architecture. No proprietary funds and no provider paying for placement; the lineup is built around the plan, not a vendor's shelf, and held to the four criteria above without exception.
- Credentialed, with one point of accountability. AIF®, ARPC®, CEFEX, and fi360 standards, with a single accountable team across the full benefit lifecycle rather than a handoff chain.
Is it worth it?
Two worries keep sponsors from getting help: cost and disruption. Disruption is the smaller of the two. A fee-only consultant works alongside the existing providers, nothing has to change to begin, and a benchmark often ends with the incumbent repricing rather than a transition. Cost tends to take care of itself. Fee-only engagements are transparent and flat, and because the review spans every layer of plan expense, the analysis frequently surfaces more than it costs. The documented, defensible process is there regardless.
Common questions
Is my plan too small to need a consultant?
No. The fiduciary duty to monitor fees and run a prudent process has no asset minimum — and smaller plans, which often pay the highest per-participant costs, frequently have the most to gain from a first market check. Regency works with plans across the size spectrum.
Isn't this what our recordkeeper or current advisor already does?
A provider can administer a plan well, but it is not independent of itself — it cannot objectively benchmark its own fees or recommend a competitor. A broker paid through the plan's products has the same limitation. Independent oversight is, by definition, the part an interested party cannot provide.
How is a fee-only consultant different from a 3(38) investment manager?
A 3(38) takes discretion over the investment menu specifically. A consultant's scope is broader — fees, vendors, documentation, compliance, and committee process across the whole plan — and a fee-only consultant is compensated only by the sponsor. The roles can coexist; the consultant can also help select and monitor a 3(38).
What does an engagement involve?
It starts with a review of the plan against the Four-Point Plan Review — fees, funds, documentation, and independence — benchmarked against the live market. Regency is fee-only, so the engagement is transparent and flat, with no compensation from any provider influencing the findings.
See where your plan stands.
Curious how your plan scores on the Four-Point Plan Review? Regency will benchmark it and walk you through what it finds.