How Do You Know If What You Are Doing is Right?

Fiduciary responsibility has been a growing concern among sponsors of qualified retirement plans over the past several years. Government agencies such as the Internal Revenue Service and Department of Labor issue rules and regulations that must be followed in order to ensure that employee's rights are protected. As a retirement plan sponsor, you need to be aware of your responsibilities relating to the day-to-day administration of your Retirement Plan.

Who is a plan fiduciary?

A fiduciary is anyone who possesses or exercises discretionary authority over Plan Design and Administration -or - has control over plan assets.

Legal Duties of a plan fiduciary:

• Loyalty – place interests of participants over “the organization” - avoid conflicts of interest
• Fiduciaries must discharge their duties for the express purpose of providing retirement benefits to plan participants and their beneficiaries
• Conduct is evaluated using the “prudent person” standard – did the fiduciary carry out their duties with the care, skill, and diligence a prudent person would use?
• Plan fiduciaries have responsibility for the design, establishment and ongoing administration of the retirement plan, in compliance with applicable IRS and Department of Labor guidelines, which include:
  • Maintaining an Investment Policy Statement
  • Selecting investment options and service providers
  • Monitoring investment options
  • Maintaining accurate records
  • Communicating with employees

Fiduciaries must also discharge their duties in accordance with the terms and provisions of the specific plan documents and other instruments governing the plan.

For more information, access the Department of Labor Meeting Your Fiduciary Responsibilities  page.

If you have concerns regarding your duties and responsibilities as fiduciary for your organization's retirement plan, or general questions about the design, features, or investments available through your current plan, contact Jeff Gater, our Plan Design and Development Manager, at (888) 879-1376, ext. 209, or by email .