FAQ - The FIRE System

 

  • What is The FIRE System?    See more

In a nutshell, it is a plan sponsor’s compliance tool for monitoring and oversight of their plan.

 

An innovative and unique tool that un-complicates 401(k) compliance. It shows plan sponsors their overall fiduciary risk, alerts them to specific issues that need attention and provides immediately them with potential solutions.

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  • What types of plans are covered??   See more

Currently participant driven traditional 401(k), 401(k) (12) and 401(k) (13) plans.

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Although directly designed for plan sponsors fiduciaries to audit and review their plans, The FIRE System is a great sales and prospecting tools for service providers.   Service providers get an up close view of the plan along with getting to know their plans better.  We encourage provides to sit down with the plan sponsors to help educate them and be there to answer any questions.

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  • How long does it take to do a review and get the results?   See more

For a plan sponsor that knows their plan, it should take about 45 minutes to answer the questions, obtain their risk levels, find out where there are issues and be provided with possible solutions.  Traditionally if done manually this can take a couple of weeks or more and cost thousands of dollars.

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  • What if The FIRE System uncovers something we (the service provider) have done wrong?    See more

The FIRE System is not designed to oversee the service providers. It was developed to make sure the plan sponsor’s fiduciaries are doing proper oversight, monitoring and documenting of their plan activities. We encourage providers to sit down with the plan sponsors to help educate them and be there to answer any questions in case something may arise that appears contrary to the issue and solution The FIRE System provides.

The FIRE System is not absolute, only someone (the plan fiduciary) who is intimately involved with the plan document and the operation of the plan can provide the answers. The service provider is often the best one to help provide guidance and direction.

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  • Won’t doing a plan audit like The FIRE System cause problems with our compliance people?See more

The FIRE System is a comprehensive, self-contained fiduciary review/audit. We like to call it a self-assessment. As a service provider you are often precluded for helping a plan with its operations. The issues and solutions are given directly based on the answers provided by the plan sponsor.

You, as the service provider, are there to answer questions and not give results or fix the issues (unless they are yours). We liken this to sitting down next to someone who is answering tax software questions, the software does the work and tells the person if they owe taxes or get a refund. You are there to just answer questions to help them understand what is being asked.

We are former compliance, regulatory and investment professionals and builting this with you in mind. We welcome the opportunity to talk to and work with your compliance staff to ensure you are staying in compliance

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