Fiduciary Services
First Mercantile recognizes the high importance of fulfilling
fiduciary responsibilities in today's financial marketplace. That's why
we make available our Fiduciary MasterPlannerTM services to help our
clients document and maintain quality compliance records. Our Fiduciary
MasterPlanner services assist our clients with understanding and
complying with their roles as plan fiduciaries.
First Mercantile's Fiduciary MasterPlanner services consist of:
The Advisor Review
Committee
The Advisor Review Committee (ARC) acts in a fiduciary capacity
as trustee of the funds on the First Mercantile platform. The role of the ARC is
to provide a broad range of funds to meet the unique requirements of plan
participants. The ARC oversees a stringent selection and monitoring process to
ensure that each investment advisor and mutual fund merits inclusion on our
platform. The ARC develops an investment policy statement for each advisor to
serve as a guideline in monitoring performance on an ongoing basis and to
determine when and if replacement is necessary. The ARC makes the plan
sponsor's job easier by performing this ongoing due diligence.
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Web-based tools
Plan sponsors and participants
have a plethora of web-based tools that assist them in being compliant with
Department of Labor and ERISA regulations. First Mercantile has several options
that assist plans sponsors with efficiency when performing fiduciary
obligations. The e-Deposit feature allows plan sponsors to submit contributions
in a timely and efficient manor electronically. Our e-Distribution feature
allows them to submit a distribution request in a paperless format and our
pre-populated forms are updated to meet current regulations. The First
Mercantile e-Reports feature allows them to have select reports sent to specific
email accounts on a regular basis. These reports allow them to monitor crucial
information regarding the operation of the plan and then file the reports in
their due diligence file. The automatic rebalance feature allows participants to
stay in line with asset allocation models for which the participant and
investment consultant have determined to be appropriate in assisting the
participant to meet their retirement goals.
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Deposit Watchdog
The financial press has reported several stories about the DOL?s interest in investigating
employers who make late deferral or contribution deposits. First Mercantile offers an
enhancement that assists plan sponsors in fulfilling their responsibilities to timely
deposit salary deferrals withheld from employees? paychecks. First Mercantile will notify
the plan sponsor of deposits that have not been received within 7 calendar days following
each specific payroll date. This feature, in conjunction with e-Deposit, will assist the
plan sponsor in depositing salary deferrals in a timely manner and provide a simple way for
the plan sponsor to monitor the process.
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Investment Policy Statement Guide
According to the Center for Fiduciary Studies, an Investment Policy Statement is
the most important document to include in a plan sponsor's due diligence file.
First Mercantile makes available to investment consultants a sample investment
policy statement and guide. This document, which details the core investment
needs as well as criteria for selecting and monitoring plan investments,
demonstrates the prudence of the plan's investment decision process. A detailed
investment policy statement will assist the plan sponsor with a clear plan for
building a meaningful retirement strategy for participants.
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Trusteeship
At the request of the plan sponsor, First
Mercantile will act as a directed trustee for the retirement plan. In this
capacity, First Mercantile is subject to the instructions with respect to
investment decisions of another person (fiduciary) or entity (investment
committee) that has discretionary authority. The duties which First Mercantile
are subject to as directed trustee are detailed within the trust document and
may include: administering the trusts in the interest of the participants,
protecting trust property against theft or loss, maintaining all recordkeeping
duties and ensuring retirement assets are not being used in a manner considered
to be a prohibited transaction under ERISA or the IRC. This is another way that
First Mercantile acts as a partner in the mutual fiduciary endeavor.
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Online retirement financial
planning tools
Plan participants can receive help with their retirement
savings and investment decisions by using our educational tools and calculators.
First Mercantile allows participants to measure their retirement planning
efforts against what they are actually going to save. This information will
enable them to effectively plan for the future. By allowing the participant
additional control over their retirement planning, you are potentially
alleviating your fiduciary liability as it relates to a participant's investment
strategy choice.
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Fiduciary
Compliance Blueprint
First Mercantile has aligned with
ERISA Compliance
Associates, LLC (San Diego, CA) to offer companies a proactive analysis of
company retirement plan(s) that ensures the appropriate processes and procedures
are in place to fulfill fiduciary obligations and most importantly, that these
procedures are being executed. This annual analysis assists you in building a
complete strategy to manage your fiduciary risk while maximizing your
participants' wealth.
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§404(c)
assistance
First Mercantile assists plan sponsors with §404(c) compliance.
A plan sponsors primary responsibility by intending to be §404(c) compliant is
communication with participants. Plan sponsors should be proactive in
communicating as much as possible to plan participants regarding investment
options and diversification, strategic planning for retirement and expenses
charged to the plan. We provide participants with a user-friendly web site
containing educational information about the plan and its investment options.
The plan sponsor has access to additional reports and expense disclosures
through www.plnsponsor.com or in the plan application to share with participants
upon their request.
For a comprehensive web demonstration, please contact the First
Mercantile sales department.
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