The video titled “How to Get Help with Form 5500: Tibble Counsel Jerry Schlichter Explains” features Jerry Schlichter discussing the complexities of the Form 5500, which is used in employee benefit plans under ERISA. The video emphasizes the importance of advisors educating themselves on these forms, as they are held to a standard of a prudent financial expert. Advisors may need to request additional information from plan sponsors to ensure compliance and proper documentation.
Schlichter also discusses the impact of legal cases such as the Boeing settlement, where reforms to the plan were implemented as part of the settlement, leading to greater benefits for participants. He highlights that these reforms often provide more value than the financial settlements themselves.
Additionally, Schlichter addresses a recent excessive fee case against Anthem, involving Vanguard funds. He argues that even with Vanguard’s low-cost reputation, advisors should ensure that sponsors choose the lowest fee options available, as even a 1% fee difference can significantly impact an employee’s retirement savings over time.
The video provides practical insights into due diligence for financial advisors dealing with complex ERISA forms and emphasizes the importance of minimizing fees for the benefit of employees.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
