05/05/20 – A plan fiduciary plays an important role in the organization’s financial health. Not only do they oversee the fiduciary process, but they identify and serve the best interests of a retirement plan’s participants and beneficiaries. Here are 10 important responsibilities to keep in mind.
- Limit liability: As a fiduciary, it is imperative that you understand ERISA so you can keep yourself and your business safe from liability.
- Find the right plan provider: Finding a retirement plan provider is much more complicated than many realize.
- Keep costs low: No matter how big your business’s budget, always monitor fees to ensure you are getting the best deal.
- Oversee plan performance: Once a retirement plan is in place, continuously monitor its performance.
- Educate plan participants: Regardless of position and hierarchy, employees may come to you asking about plan options. What should you say?
- Stay informed: Your role is to know more about your business’s retirement savings plan than everyone else, so education is vital.
- Avoid personal gain: As a fiduciary, it’s important to distance yourself from any situation that could be perceived as personal gain from the retirement plan.
- Diversify investments: The investment options offered in your plan should be diversified. This limits financial risk and helps balance risks and rewards.
- Monitor participant satisfaction: Evaluate employee satisfaction with the plan. Follow up on complaints, and regularly gauge the plan needs to determine the right time for change.
- Ensure employees understand their options and monitor their satisfaction levels.
Acumen Wealth Advisors, LLC® is affiliated with RPAG and utilizes their robust retirement plan consulting tools and resources to deliver enhanced value to plan sponsor clients. RPAG™, a wholly owned subsidiary of NFP (NFP Corp.), provides retirement advisors premier technology, systems, training, and resources through its practice management platforms.