Know Your Fiduciary Responsibilities
Avoid the Perils of Retirement Plan Mismanagement:
Employee retirement plans play an important role in successful compensation and benefits programs. These qualified retirement plans also present significant fiduciary responsibilities for those who run them. There’s a lot on the line and many details to cover.
According to the U.S. Department of Labor, anyone who exercises discretionary authority or control over a retirement plan is a fiduciary. And today’s knowledgeable fiduciaries are not just required to stay abreast of current ERISA regulations, but also to have a system in place to meet those regulations.
The trouble is, many of plan sponsors lack understanding of these responsibilities and leave themselves and their organizations open to significant liabilities, including 401k/403b mismanagement lawsuits.
Does Your Qualified Retirement Plan Meet Your 7 Key Fiduciary Responsibilities?
Ask yourself these questions:
- Do your fiduciaries have a solid understanding of ERISA standards and laws?
- Are the assets you manage well diversified?
- Do you have a current Investment Policy Statement?
- Do you employ the help of prudent experts?
- Do you maintain an account for investment expenses?
- Do you monitor the activities of your prudent experts?
- Do your fiduciaries avoid conflicts of interest?
If your answers to each of the above questions are anything less than a resounding yes, you may be putting your plan in jeopardy. If you’re unsure, it is wise to enlist the help of an expert to conduct a 401k/403b plan review.
At Lyceum, our experts are here to provide top-level guidance on all aspects of your retirement plan operations, including investments, risk, and education. Learn more by exploring our retirement plan administration services.
