401(k) retirement plan fiduciary responsibilities

10 Things Plan Fiduciaries Probably Do Wrong	8/24/2010

Back to Listings

Retirement plan sponsors have a fiduciary responsibility to manage their plans prudently. PlanSponsor.com has posted a summary of the "Ten Things You're Probably (Still) Doing Wrong" presentation that was conducted at the Plan Sponsor National Conference in Chicago recently. The summary concisely reminds plan sponsors of key issues they need to address in their role as fiduciary. Ten Things Plan Sponsors/Fiduciaries are (Still) Doing Wrong: Failing to correctly analyze plan expenses to determine if they are legitimately payable from trust assets. Failing to understand the protection offered under section 404(c), and incorrectly thinking it extends to the duty to prudently monitor the investment offerings under the plan. Not complying with QDIA notice requirements. Heedlessly relying on skimpy investment policy statements. Not following provisions of the plan documents. Not doing enough due diligence on selecting and monitoring fund options. Not knowing (or failing to ascertain) if plan fees are reasonable. Failing to separate responsibilities of plan committee members. Governance failures. Not seeking the help of experts when they lack the expertise to make fiduciary decisions impacting the plan. Please contact us with questions about plan sponsor fiduciary responsibilities or concerns about a specific plan.

Back to Top

Related Links