Qualified Retirement Plan Solution through CLS and Empower

Through CLS’s qualified retirement plan solution, CLS becomes the plan’s ERISA 3(38) investment advisor, which means we take on management of the plan’s investment offerings according to an established investment policy. This means that the plan’s trustee is only responsible for selecting and monitoring the 3(38) fiduciary (CLS). In addition, the plan sponsor and advisor are not responsible for investment selection, monitoring, and replacement decisions.

CLS and Empower’s qualified plan solution provides the plan with access to CLS’s core lineup of investments. These investments include low-cost index fund options that offer exposure to major asset classes that are beneficial to portfolios over a full market cycle. In addition to the CLS core lineup, plan sponsors will also receive access to one of two target date series options. Plan sponsors also have the opportunity to add CLS’s risk-based models to the plan offering, which are managed according to the risk range each employee falls into.

Explore CLS’s Fund Selection and Monitoring Process

CLS follows a disciplined approach to seeking, screening, selecting, monitoring, and replacing fund options within the plan.

  • Seeking Diversification: CLS seeks funds that offer global diversification among the major asset classes an investor may want exposure to over a full market cycle.
  • Screening: By completing an initial screening of each fund, CLS is able to review and identify investments within each asset class that meet our criteria.
  • Assessing & Selecting: CLS utilizes a fund selection process to assist in manager/investment selection. Investments that have shown a consistent performance and style history, are attentive to fund costs, and are from large, reputable organizations are selected.
  • Monitoring & Replacing: Every investment is monitored and reviewed regularly by CLS’s Investment Team, who looks at a variety of information including expense ratio, portfolio turnover, total return, size of the fund, and more. When the number of established criteria are not met, the fund will be placed on our “watch list.” After the fund remains on this list for eight consecutive quarters, it will be removed and replaced. The investment policy statement will detail all of the criteria within the plan.

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