Key Takeaways
- • APS Investment Management, the institutional fiduciary arm of Melville-based APS Pension & Financial Services, is offering independent fiduciary assessments of existing 401(k) and 403(b) plans for private companies and nonprofit organizations.
- • The reviews are led by Steven J. Musmanno, MBA, AIFA, Chief Investment Officer of APS Pension & Financial Services and APS Investment Management, who chairs the APSIM Fiduciary Investment Committee and serves as its Chief Fiduciary.
- • The assessments cover governance, investment policy, fund lineup, fees and documentation, and are framed around ERISA fiduciaries' ongoing monitoring duty as affirmed in Tibble v. Edison International (2015).
- • APS states it has designed, administered and invested retirement plans for closely held businesses for more than four decades.
Summary
APS Investment Management, the institutional fiduciary arm of Melville, New York-based APS Pension & Financial Services, conducts independent fiduciary assessments of existing 401(k) and 403(b) retirement plans for private companies and nonprofit organizations on Long Island. The work is overseen by Steven J. Musmanno, MBA, AIFA, the firm's Chief Investment Officer and Chair of its Fiduciary Investment Committee.
An independent fiduciary assessment is an outside review of a plan already in place. It examines how investments were selected, what the plan pays in fees, and whether the responsible parties follow a documented, prudent process. The article positions the service against the backdrop of ERISA, which requires employers sponsoring retirement plans to act prudently and solely in participants' interests. According to the article, the U.S. Supreme Court held in 2015 in Tibble v. Edison International that this duty includes ongoing monitoring of plan investments, not only initial selection. The firm notes that many small and mid-sized plans were established years ago and have changed little since, and that fund lineups, fee arrangements and service agreements can drift out of date unnoticed.
A typical review covers five areas: governance (fiduciary roles, documentation and committee meeting schedules); investment policy (whether an investment policy statement exists and decisions follow it); fund lineup (performance against benchmarks and peers, and coverage of a reasonable range of risk levels); fees (provider compensation compared with similar plans, drawing on ERISA fee disclosures); and documentation (whether minutes and reports evidence actual reviews).
Musmanno serves as Chief Investment Officer of both APS Pension & Financial Services and APS Investment Management, sets the asset allocation policy behind the firm's risk-based portfolios, and oversees portfolio management and trading. He holds the AIFA designation, began his career at Merrill Lynch in New York City, and holds an MBA in finance from NYU Stern School of Business. APS states it has served closely held businesses for more than four decades, with institutional clients including private companies and nonprofits with 401(k), 403(b) and defined benefit plans. Musmanno is an investment adviser representative of APS Wealth Management, LLC, an SEC-registered investment adviser; the article notes registration does not imply a certain level of skill or training.
An independent fiduciary assessment is an outside review of a plan already in place. It examines how investments were selected, what the plan pays in fees, and whether the responsible parties follow a documented, prudent process. The article positions the service against the backdrop of ERISA, which requires employers sponsoring retirement plans to act prudently and solely in participants' interests. According to the article, the U.S. Supreme Court held in 2015 in Tibble v. Edison International that this duty includes ongoing monitoring of plan investments, not only initial selection. The firm notes that many small and mid-sized plans were established years ago and have changed little since, and that fund lineups, fee arrangements and service agreements can drift out of date unnoticed.
A typical review covers five areas: governance (fiduciary roles, documentation and committee meeting schedules); investment policy (whether an investment policy statement exists and decisions follow it); fund lineup (performance against benchmarks and peers, and coverage of a reasonable range of risk levels); fees (provider compensation compared with similar plans, drawing on ERISA fee disclosures); and documentation (whether minutes and reports evidence actual reviews).
Musmanno serves as Chief Investment Officer of both APS Pension & Financial Services and APS Investment Management, sets the asset allocation policy behind the firm's risk-based portfolios, and oversees portfolio management and trading. He holds the AIFA designation, began his career at Merrill Lynch in New York City, and holds an MBA in finance from NYU Stern School of Business. APS states it has served closely held businesses for more than four decades, with institutional clients including private companies and nonprofits with 401(k), 403(b) and defined benefit plans. Musmanno is an investment adviser representative of APS Wealth Management, LLC, an SEC-registered investment adviser; the article notes registration does not imply a certain level of skill or training.
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