972.392.1143 |
972.934.1269 (Fax)
Articles

Minimizing fiduciary risk – part 2 of 2

Thankfully, there are tangible actions you can take to manage a retirement plan well and reduce or hopefully eliminate liability issues. Here are five things a plan sponsor or individual fiduciary can do: 

  1. Create an Investment Policy Statement that describes your investment guidelines for selecting and monitoring funds. Keep the statement current and make it available for all plan participants.
  2. Administer the plan according to the plan document, making timely contributions and monitoring performance. Make adjustments as needed.
  3. Make it a priority to understand all contracts and fees. Negotiate fees to get the best rates possible. Fees are your greatest source of liability. Understand and account for all expenses.
  4. Engage others in the plan process by forming a committee to meet with regularly and document the meeting decisions and discussions.
  5. Seek advice from retirement plan specialists. Such specialists provide an un-biased third party view and can assist you with the need to be a prudent expert for your plan.

In addition, your plan auditor is a good source of information regarding the management of your specific plan. A good auditor adds value to the audit process that helps you be proactive about addressing potential issues.

Tags: , ,