If you’ve recently joined your organization’s retirement plan committee, one of the most important responsibilities you’ll share is overseeing the plan’s investment lineup. For many, this can feel like stepping into unfamiliar territory with new terminology, new expectations, and real fiduciary responsibility.

The good news? You don’t need to be an investment expert to be a good fiduciary. What matters most is having a thoughtful process, asking the right questions, and staying focused on participant outcomes.

Here are four key areas to guide your approach.

1. Start with the Participant in Mind

At its core, your investment lineup should serve the needs of your employees and not the preferences of the committee.

Think about:

What is the general level of financial literacy among employees?
Are participants engaged, or do most rely on defaults?
What age demographics are represented (early career vs. nearing retirement)?

For many plans, this leads to a lineup anchored by qualified default investment alternatives (QDIAs) like target-date funds, complemented by a simplified menu of core options.

A helpful philosophy: make the right decision the easy decision. If participants do nothing, they should still be on a solid path.

2. Emphasize Simplicity Over Complexity

More investment options do not necessarily lead to better outcomes. In fact, too many choices can overwhelm participants and lead to inaction.

A well-constructed lineup often includes:

A target-date fund suite (as the default)
A small set of diversified core funds (e.g., U.S. equity, international equity, fixed income)
Possibly a capital preservation option (stable value or money market)

The goal is not to offer everything, but rather it’s to offer what’s necessary and useful.

From a fiduciary standpoint, simplicity can improve participant engagement and reduce the risk of poor decision-making.

3. Focus on Process, Not Predictions

One of the most common misconceptions is that committees are expected to “pick winners.” In reality, fiduciary responsibility is less about predicting performance and more about following a prudent, documented process.

This includes:

Establishing an Investment Policy Statement (IPS)
Defining clear criteria for selecting and monitoring funds
Regularly reviewing investments against those criteria

A consistent process demonstrates diligence and helps ensure decisions are made in the best interest of participants and not based on short-term market noise.

4. Understand Fees and Value

Fees matter, but context matters more.

Rather than simply selecting the lowest-cost funds, focus on value relative to cost:

Are participants receiving appropriate diversification?
Are the funds aligned with their intended role in the lineup?
Is performance reasonable given the strategy and market conditions?

Transparency is key. Committee members should understand:

Investment expense ratios
Recordkeeping and administrative costs
How fees impact participant outcomes over time

A thoughtful evaluation of fees is an essential part of fulfilling your fiduciary duty.

A Short Case Study: Turning Complexity into Clarity

A mid-sized manufacturing company with 120 employees had built its investment lineup over time by adding funds reactively rather than intentionally. By the time a new committee was formed, the plan offered 28 investment options, including multiple funds in the same asset class.

What they observed:

Over 60% of participants were invested in just 3–4 funds
Many employees held overlapping funds without realizing it
New hires were defaulting into a target-date fund but then moving out within months, often into more conservative options

The committee paused and asked a simple question: Is our lineup helping or hindering good decisions?

What they did:

Consolidated the lineup to 12 core options
Designated a single, well-structured target-date suite as the QDIA
Clarified each fund’s role within the lineup (no duplication)
Reviewed fees and replaced a few higher-cost funds where appropriate
Paired the changes with a simple participant communication campaign

The result:

Increased usage of the target-date funds as a long-term solution
Improved diversification among self-directed participants
Fewer “reactionary” investment changes during market volatility
Greater confidence from the committee in their fiduciary process

The takeaway: progress didn’t come from finding better funds. It came from creating a clearer, more intentional structure.

Bringing It All Together

Selecting an investment lineup is not a one-time decision, it’s an ongoing responsibility. The most effective committees:

Stay focused on participant outcomes
Keep the lineup clear and purposeful
Follow a disciplined process
Revisit decisions regularly with intention

This is where thoughtful plan design and participant guidance come together. A well-structured lineup, paired with clear communication and education, can meaningfully improve retirement readiness.

Final Thoughts

If you’re new to a plan committee, remember: you don’t have to have all the answers. You just need to ask the right questions and commit to a prudent process.

Done well, your role has a real impact. You’re not just selecting funds but rather helping employees build financial security for the future.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5460147

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As more employees approach retirement, one question continues to rise to the surface:

“How do I turn my savings into a reliable paycheck?”

With the passage of the SECURE 2.0 Act, employers now have more flexibility to incorporate in-plan income solutions, including annuities, directly into their retirement plans. At the same time, participants still have access to out-of-plan income strategies once they leave employment or roll over their assets.

For HR leaders and CFOs, this creates both an opportunity and a decision point.

Why Income Guarantees Are Gaining Attention

For years, retirement plans have done an excellent job helping employees accumulate assets. But as retirement gets closer, the focus naturally shifts:

• Will my money last?

• How do I create consistent income?

• What happens if markets decline early in retirement?

Income guarantees, typically through annuity structures, help address these concerns by converting a portion of savings into predictable, often lifetime income.

In-Plan Income Guarantees: Pros and Considerations

What It Means

An in-plan solution allows participants to allocate a portion of their workplace retirement plan into an income product while still inside the plan.

Advantages:

• Simplicity and Access
Participants can elect income features within a familiar environment; no rollover required.

• Institutional Pricing
Plans may offer lower-cost options due to scale and fiduciary oversight.

• Fiduciary Vetting
Plan sponsors evaluate and monitor providers, helping bring a level of due diligence to the selection.

• Behavioral Benefits
Participants are more likely to engage with income solutions when they’re built into the plan experience.

Considerations:

• Fiduciary Responsibility
Adding an income solution introduces ongoing oversight, including insurer selection and monitoring.

• Portability Limitations
Income features may not always transfer seamlessly if an employee changes jobs.

• Plan Complexity
Additional features can increase administrative and communication demands.

• Limited Customization
Plan-based options may not fit every participant’s unique financial situation.

Out-of-Plan Income Guarantees: Pros and Considerations

What It Means

Participants roll assets to an IRA or other vehicle and purchase an income solution independently.

Advantages:

• Flexibility
Participants can tailor income strategies to their personal goals and timelines.

• Broader Selection
The retail marketplace offers a wide range of products and features.

• Portability
Income strategies are not tied to an employer plan.

• Integrated Planning
Allows coordination with tax, estate, and broader financial planning strategies.

Considerations:

• Potentially Higher Costs
Retail pricing may be higher depending on the structure.

• Decision Complexity
Participants must navigate choices without the built-in framework of a plan.

• Advice Dependency
Outcomes often depend on the quality of guidance received.

• Behavioral Risk
Without structure, some participants delay or avoid converting assets into income.

Why Consider One Over the Other?

There’s no one-size-fits-all answer and that’s exactly the point.

In-plan solutions can be especially effective when the goal is to:

• Increase access and participation across the workforce

• Provide a simplified, guided experience

• Leverage fiduciary oversight to support better outcomes

Out-of-plan solutions may be more appropriate when:

• Participants have more complex financial needs

• Customization becomes a priority

• Individuals are working closely with a financial advisor

A Practical Takeaway for Plan Sponsors

This doesn’t have to be an either/or decision.

Forward-thinking employers are increasingly viewing in-plan income as a foundational option, while recognizing that some participants will benefit from more personalized, out-of-plan strategies.

This is where thoughtful plan design and participant guidance come together.

The real opportunity is helping employees make the shift from focusing on how much they’ve saved to understanding how that savings can generate income they can rely on.

That’s where confidence increases and where plan sponsors can make a meaningful impact.

Final Thought

As income solutions continue to evolve, so does the role of the plan sponsor from offering a savings vehicle to supporting a more complete retirement income strategy.

Taking the time to evaluate these options today can help position your plan, and your people, for greater confidence tomorrow.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5341149

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Rose Street Advisors is honored to be recognized once again by the National Association of Plan Advisors (NAPA) as one of the nation’s Top Defined Contribution (DC) Advisor Teams. This marks our fourth consecutive year receiving this distinction, an achievement that reflects our continued commitment to delivering exceptional retirement plan guidance to employers and their employees.

Among the 373 teams recognized nationwide, only 21 are located in Michigan, and we are the only firm in Kalamazoo to earn a place on this year’s list. For us, this recognition is more than a milestone; it is a meaningful affirmation of the work we do every day to support organizations, strengthen retirement outcomes, and serve as a trusted partner to leadership teams and plan participants alike.

A Team Built on Purpose and Partnership

Our retirement plan advisory team, led by Scott Higgins, AIF®, CFP®, CPFA®, NSSA®, Financial Advisor, and supported by Julia Sanders, AIF®, CPFA®, Retirement Relationship Manager, brings a disciplined, service‑driven approach to every plan we support. Their work spans fiduciary guidance, plan design consultation, investment due diligence, and participant education, all delivered with a focus on clarity, responsiveness, and long‑term impact.

Within our firm, we often return to a guiding principle that shapes our culture and our client experience:

“What we do and how we do it matters.”

This mindset influences how we prepare for meetings, how we communicate complex topics, and how we support organizations navigating the evolving retirement landscape. It’s a reminder that technical expertise is essential, but the way we show up for clients is equally important.

Recognition That Reflects Real-World Impact

NAPA’s Top DC Advisor Teams list highlights firms with at least $100 million in defined contribution assets under advisement and recognizes teams that demonstrate leadership, consistency, and meaningful contributions to the private retirement system. Unlike broader industry rankings, this list focuses on the work of individual teams within a single physical location—making it a direct reflection of the service we provide to employers and participants in our region.

We are grateful for the trust our clients place in us and remain committed to helping organizations build stronger, more confident retirement futures for their employees.

2026 NAPA Top DC Advisor Teams, created by NAPA. Presented in March 2026 for the previous year. All NAPA members with over $100 million in defined contribution assets under advisement made the list. 372 Advisors were recognized. Advisors pay a fee to hold out marketing materials. Not indicative of advisor’s future performance. Your experience may vary. Click here for the most recent award information.

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