To achieve success in the small retirement plan market, one of your major prospecting challenges is to identify plan decision-makers.

In fact, two of the most basic rules for success in this market are: 1) Identify and meet the decision-makers; and 2) Identify and document needs.

FreeERISA.com can help you identify key decision-makers for purposes of your initial prospecting calls. It also can indicate other decision-makers whom you may meet down the road, such as when you gather data for a Request for Proposal (RFP) or present your proposal and recommendations.

It would be helpful if you could go to one screen in the FreeERISA data base and find all of a plan’s key decision-makers neatly arrayed. Unfortunately, the Department of Labor did not consider your needs in designing the public disclosure forms that feed data to FreeERISA. So, you will need to scavenge among several forms to find names and titles.

In this article, we’ll highlight where to go and what you may find.

Form 5500

Line 2a contains the plan sponsor’s name and address. For many small businesses, this will be the name of the business owner. In the space below this line you will find the name of the individual signing as plan administrator and the individual signing as employer or plan sponsor. In many companies, these names will be for the same person. In some larger companies, the plan administrator may be a senior manager in the Employee Benefits or Human Resources department. In some filings, the plan administrator’s telephone number can be found on Line 3a.

Line 5 contains the name of a tax preparer, if one is used. Not all tax preparers are CPAs who provide high-level advice on plans and their features. But since some are, you should note the preparer’s name in your notes, and ask during fact-finding if the preparer provides plan-related advice or services.

Schedule A

This schedule is filed by plans funded by insurance contracts. Line 2 of Part I often identifies an insurance agent or broker to whom commissions or fees have been paid. This may be a potential competitor, but don’t assume that’s the case without probing. It could also be an advice-giver whose buy-in you will need.

Schedule B

This Actuarial Schedule is required of defined benefit plans and other plans that accrue future liabilities or cross-test for future benefits. The statement is signed by an enrolled actuary, a professional enrolled with the IRS to perform these calculations. Note whether the actuary’s address is local (in the same area) or not. A local actuary is more likely to provide other types of technical advice than one working more distant. Whether or not the actuary is a decision-maker, this can be a valuable person to know for purposes of obtaining information (with the sponsor’s permission) and assistance in plan conversions.

Schedule C

This schedule lists Service Provider Information, including fees and commissions paid and the nature of services rendered. It is only available for a small percentage of plans in the FreeERISA data base.

Schedule H

This schedule, containing detailed financial information about the plan’s assets and liabilities, is not required of most filers in the data base. In some cases, it discloses the name of the plan’s CPA under Part III, Accountant’s Opinion.

Schedule P

This schedule is the Annual Return of the Fiduciary of the Employee Benefit Trust, which holds plan assets. It technically is not filed by the plan sponsor or administrator but rather by the trustee or custodian of the trust. The name of that individual can be found on line 1a, and that person’s address is on lines 1b and 1c. If you find that the administrator and trustee/custodian are different people, consider both as possible decision-makers. The administrator may hold sway over the plan’s design, recordkeeping system, compliance, and cost issues. The trustee/custodian may have responsibility for investment-related matters and also is technically responsible for making distributions.

Moving Forward

Once you know a decision-maker’s identity, you can pick up the phone and call that person directly. Or, you can investigate among your clients and contacts to find an individual who knows the decision-maker and is willing to provide an introduction. A third approach is to contact lower-level employees at the company and ask them how the decision-maker works and thinks.

In your first call to any decision-maker, introduce yourself and your firm briefly but avoid proposing, recommending or selling. The goal of that call is always to ask questions, listen and identify decision-makers’ needs-on both business and personal levels.

Once you have identified key decision-makers and then identified and documented their needs, you have taken two important steps toward a potential sale.

Instant Insights /

Using FreeERISA.com to identify plan decision-makers

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