Fiduciary Compliance

Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries.  A plan’s fiduciaries will ordinarily include the trustee, investment advisors, all individuals exercising discretion in the administration of the plan, all members of a plan’s administrative committee (if it has such a committee), and those who select committee officials.  A fiduciary’s responsibilities include:

  • Acting solely in the interest of plan participants/beneficiaries, with the purpose of providing benefits to them
  • Carrying out their duties prudently
  • Following the plan documents (unless inconsistent with ERISA)
  • Diversifying plan investments
  • Paying only reasonable plan expenses

Managing an employer-sponsored retirement plan is usually not the top priority for the HR Manager, CFO, CEO, or other individuals tasked with the job of plan governance.  However, managing a retirement plan involves personal liability (for decision makers), a risk that can be mitigated if a prudent plan management process is implemented.  Often times, it is assumed that the service providers are the ones assuming the fiduciary risk and, unfortunately, this is seldom the case.  Together, we will create a comprehensive plan that guides your company through your fiduciary compliance duties and the ongoing support of your 401(k) plan.