How well informed are you regarding the changes to your fiduciary responsibility?
The vast amount of information necessary to effectively satisfy your fiduciary responsibility can be daunting. Litigation by class action attorneys and increased investigations by the Department of Labor (D0L) are costing unsuspecting plan sponsors billions annually.
All of those involved in the management of a qualified plan must understand those critical issues that affect their plan. This fiduciary responsibility includes being aware of DOL IRS regulation changes and having a thorough understanding of all plan documents. The recent 408(b)(2) and 404a5 disclosures are two examples of those changes.
The duty to act prudently is a central fiduciary responsibility under ERISA. Prudence focuses on the process for making fiduciary decisions. Therefore, it is wise to document decisions and the basis for those decisions. As a fiduciary, you have an obligation to ensure your plan is compliant with the legislative acts that govern it.
With everything involved in managing a successful and compliant company retirement plan, you should develop a list of the key issues and the dates for completing each issue.
The items you document should include:
- Annual Plan Review
- Plan Expense Review using 408(b)(2) Plan Sponsor Fee Disclosure
- Evaluating your Employee Education Program
- Quarterly Investment Monitoring Reviews
- Provider Due Diligence
- Fiduciary Education Initiatives
- Investment Policy Statement Review
In addition to the items listed above, you should document the critical administrative dates you need to be aware of such as:
- Deadline for you to furnish Form W-2 to your Employees
- Date the Form 5500 due to the IRS unless an extension has been filed
- Date you must make the Summary Annual Report available to all plan participants
- Date all Plan Amendments must be signed
- Date to review top-heavy test for accuracy
- Date that RMD’s are due for members who are age 70 1/2 and have either retired or are 5% owners
- Other critical administrative dates as necessary
The Peak Administration Guide™ will walk you through a process to help you understand the depth of information necessary to effectively manage a qualified plan, and provide you with the tools to help you keep up with the changes that affect your plan. We’ll help you document your efforts to stay informed of the issues you face as a fiduciary, but you will have a manageable process to use going forward to help you continue to keep informed of any legislative or other changes that could have an effect on your plan. Along with your summary, you will receive a guidance checklist to use during plan reviews for monitoring any administrative changes on your plan as well as a planning calendar to keep you updated on a regular basis of issues that are necessary to know from a fiduciary standpoint.
