Remember the old TV commercial that stated ‘no two aspirins are alike’. While for some that’s still a debatable issue, there is no debate when it comes to corporate retirement plans. They’re simply not all the same. So before any plan is decided upon, it’s essential to ascertain a few facts about the potential provider.

The first thing you need to find out is whether a plan provider offers open architecture. In other words, the provider you choose should place no requirements on funds. The least desirable plans will force you to use their own funds. More often, you’ll have to employ funds that provide a certain amount of revenue sharing. This isn’t necessarily a negative; some of the best funds will involve revenue sharing as a means to defray costs. Many of these will even reimburse it. “The best retirement plan providers will go one step further,” states Peter Macaluso, Vice President of FM International Services (NY), Ltd., one of America’s most respected retirement plan providers. “These firms will also show you the precise amount of the revenue sharing, and allow fiduciaries to choose the most appropriate funds for a particular client.” (more…)