Pension Consulting

HM Capital Management, LLC (HMCM) is a fee-only pension consultant operating as a SEC Registered Investment Advisor. HMCM is not affiliated with any broker dealer, plan record-keeper or administrator. As a result, we do not have an economic bias to work with one retirement provider over another. HMCM does not receive commissions or mutual fund 12b-1 fees. HMCM acts as a plan fiduciary where most others can not. 

HM Capital Management will serve as a plan fiduciary for the benefit of Plan participants and the Plan Sponsor. The following is a list of services HM Capital Management provides as a plan fiduciary.

In today's dynamic capital markets, plan sponsors must evaluate more asset classes, review more investment managers, appraise more risks, react more rapidly, comply with more regulations, and bear more scrutiny. Meeting those challenges requires objective and expert advice. As your plan fiduciary HMCM takes responsibility for the following:

Initial Services

Investment Policy Statements - review the Defined Benefit and Defined Contribution Plans' Investment Policy Statements, which outline the investment objectives, policies, constraints and risk tolerance of the Plans. Incorporate changes to ensure documents conform with the recently enacted Pension Protection Act.  If the Plans do not have an Investment Policy Statement, HM Capital Management will prepare the Investment Policy Statements. These policies will be adopted by the Retirement Committee and will serve as guides for future committee members. 

Defined Contribution Fund / Manager Review and Research

• Thorough analysis of existing fund/manager options with particular focus on performance, expenses and manager tenure
• Provide recommendations for potential additions and replacements
• Review investment options to ensure availability of a diversified investment platform while avoiding style duplication
• Select "best in class" managers from the universe of mutual funds providing the greatest chance for consistent, long-term over-performance

Defined Benefit Plan Asset – Liability Study

Assist in selecting a target asset allocation that provides the optimal combination of risk and return for the Defined Benefit Plan. This process would most likely include the coordination of a comprehensive asset/liability study from a qualified third party.

Review of Plan Expenses for Complete Fee Transparency - conduct an in-depth analysis of current Plan expenses, such as:

• Fund Expense Ratios (%)
• Plan Hard Dollar Costs
• Revenue Sharing/Service Fee Offset (%)
• Weighted Average Participant Cost
• Per Participant Annual Recordkeeping Fee

Review of Current Plan Recordkeepers / Trustees - Evaluate the Defined Contribution Plan participant education program, including:

• Annual participant education schedule
• Personalized and segmented communication pieces
• Continuous communication vs. one-time or unrelated
• Retiree education

Employee Education - track the effectiveness of the defined contribution participant education campaign:

• Evaluate participant services including on-line capabilities, statements, and interactive voice response system
• Provide annual report summarizing the effectiveness of the education program

Compliance Testing - evaluate compliance testing, look for trends, develop strategy for continuous improvement and implement.

Fulfillment of Fiduciary Duties - Because we have no proprietary funds and have no ties or affiliations with any fund companies, our only incentive is to help you develop a fund platform that is in the best interest of the plan participants. This firmly aligns our fund selection process with the goals of the plan trustees and provides a substantial amount of the due diligence requirement that is defined in ERISA. Evaluate Potential Defined Contribution Plan Design Features - such as:

• Automatic Enrollment
• Annual Automatic Increase
• Roth 401(k)

Ongoing Services

Performance Reviews - ongoing quarterly evaluation of current and potential investment options with particular focus on: