The Contractors Plan works directly with Nationwide and Transamerica insurance companies for our retirement products' investments options. The specific investment funds made available are professionally selected and monitored by the corporate trustee, American National Bank of Texas (ANBTX). ANBTX was established in 1875 and has provided trust services since 1927. As a national bank, it is subject to the U.S. Office of the Comptroller of the Currency for oversight and standards. ANBTX serves as a discretionary trustee, whereas most corporate trustees only provide "directed" trust services, where the real liability for investment selection falls to you, the plan sponsor.
The Contractors Plan offers a participant-directed or trustee-directed investment approach. You can choose the one that is right for your employees and for the company.
With a trustee-directed plan, investments are chosen by ANBTX rather than the participants. This reduces the overhead associated with employee education and company compliance with the extensive set of regulations that comes with participant-directed plans. Rather than expecting employees in the plan to be investment savvy or to try to educate them on the best approach to investing for retirement, this is taken care of by the trust retirement group at ANBTX, who have over 100 combined years of experience with retirement planning and investment.
While there are advantages for trustee-directed plans, participant-directed plans are very popular. The investment lineup is established by ANBTX, but the final choice of specific investment funds are made by the employees.
The Contractors Plan offers two primary options for participant-directed plan investments:
Both platforms offer several "traditional" funds with specific investments and objectives, for example large cap or small cap U.S. stock funds, to round out the options available in the core fund lineup.