Pike RFP

them best select and monitor a competitive target-date series or custom target date portfolio that

best suits their participants; designate default fund (QDIA).

13. What is your philosophy in utilizing Mutual funds vs Separate Accounts vs Collective

Trusts?

While CBIZ RPS is an independent consultant and works with any recordkeeping program, or

investment product in the marketplace (mutual funds, separate accounts, individual/group

annuities, CITs, ETFs, etc.) it is in CBIZ RPS’ preference to recommend low-cost/high performing

mutual funds for our client’s retirement plan programs.

Our investment philosophy hinges on the fact that investment management costs are a major

predictor of long-term performance and should be minimized to the extent possible. While Separate

Accounts or “wrapped-products” offer a great value to performance for participants, excess costs

inherently built into the product can cause long-term underperformance relative to mutual fund

peers.

We are aware of the trend for large plan sponsors to adopt collective investment trusts or separate

accounts in their plans. Our research has proven that this is only effective for the largest plan

sponsors. We are happy to explore these opportunities for our clients.

14. Does your firm act as a co-fiduciary with respect to the plans? Please provide a copy of

your co-fiduciary services agreement during the finalist interviews.

CBIZ Retirement Plan Services acknowledges its fiduciary status in all client relationships. CBIZ may

serve as an ERISA 3(21) fiduciary advisor, through which CBIZ is responsible for making

recommendations for the selection, monitoring, and replacement of investment options. In this

capacity, the plan sponsor’s retirement plan committee has discretionary authority over investments

decisions. CBIZ will assist the client by providing the proper documentation of the execution of the

client’s fiduciary responsibilities.

In an alternative capacity, CBIZ may also serve as fiduciary as an ERISA 3(38) fiduciary investment

manager in which CBIZ is responsible for making and executing decisions regarding the selection,

monitoring, and replacement of investment options. In this capacity the retirement plan committee is

relieved of fiduciary liability as it relates to the selection, monitoring and replacing of the investment

options in the plan.

Please see the Exhibits Section for a Sample CBIZ RPS Service Agreement, as requested.

15. What is your firm’s view on indexing in a 401(k) Plan, and passive versus active fund

management?

Index or passively managed investments have gained significant popularity in recent years due to the

bull market where they generally outperform. While we do recommend index funds because of their

low cost we do believe that actively managed investments can be of value in certain asset classes.

Specifically, asset classes where markets are less efficient. An actively managed bond fund, for

example, can navigate volatility in fluctuating interest rate environments. We believe a blend of

active and passive management serves our clients best.