Managing Plans Together
A plan fiduciary has an overall duty to always act in the best interest of plan participants and beneficiaries. If you administer or serve on the retirement plan committee you are considered a fiduciary. Many plan administrators don’t know or aren’t familiar with the full extent of their responsibilities and could benefit from fiduciary support in defining their role and setting expectations.
Failing to properly manage a retirement plan puts the employer and their committee at risk of litigation. How can you mitigate your risk? By having a plan and following a prudent decision-making process that includes the following:
- Maintaining a clearly defined plan governance committee, process and documentation
- Regularly reviewing and, as appropriate, negotiating service providers’ services and fees
- Having an effective process of investment monitoring, including fund fees and evaluating appropriateness of share classes.
Retirement plans are complex, and trying to develop and maintain one in a constantly evolving legal and regulatory space is difficult for many plan sponsors. Working with an advisor or consultant that can assist with these responsibilities allows plan sponsors to focus on their core objective- running their business and/or organization.
