Each company has a unique culture, and the person responsible for administering investment plans must understand that culture in order to determine the best plan for its employees. This fiduciary helps to set up programs such as health savings accounts and retirement plans. Using their knowledge, they guide and educate employees to choose the right type of account.
But there are important things to remember to ensure everything runs smoothly. These practical considerations will help your organization minimize fiduciary risk and better manage its employee savings programs.
- Choose an administrator—The U.S. Department of Labor requires one person to be appointed as a plan administrator within each organization. This should not be someone in senior management.
- Manage providers—One of the most important things an organization will do is choose a plan provider. Once this provider is chosen, the fiduciary then acts as an intermediary, monitoring the provider to ensure it remains the best option for their organization’s employees.
- Schedule classes—Fiduciaries can provide information in a variety of ways, including one-on-one counseling, informative emails, and group sessions. However, scheduling formal classes is a great option, as it gives employees the opportunity to learn more about their savings options.
- Constantly reassess—Good fiduciary management means constantly following industry trends and determining if employees have the best options available. Fiduciaries should also regularly communicate with workers to determine if their needs have changed in ways that might merit a switch in plans.
- Document and report—Accountability is an important part of a fiduciary’s role. Work as though you might be audited tomorrow, and conduct regular reviews to help make sure you are addressing compliance requirements in adherence to current regulations pertaining to retirement plans. with all regulations.
Businesses have a responsibility to deploy and administer savings plans that benefit all employees. When a company and fiduciary advisor have explored all options, employees have access to a solid, well-researched retirement plan led by an advisor who knows how to manage fiduciary risk and can help them understand their best options.
FiduciaryFirst is a Maitland, Florida based company that provides independent retirement plan fiduciary support with a holistic approach. Our comprehensive Prudent Fiduciary ProcessSM (PFP) enables employer groups to address fiduciary standards. For more information about pension consulting call us at 866-625-4611 or contact us online.
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This information was developed as a general guide to educate plan sponsors, but is not intended as authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.