Schedule Annual Reviews to Reduce Personal Liability
If you are an administrator, trustee or investment committee member of a company retirement plan— or otherwise exercise discretionary control over all or part of your plan—then you are a plan fiduciary.
Being a fiduciary can expose you to liability in a multitude of ways. If ERISA imposed duties are found to have breached then you may be on the hook personally—and courts will take whatever action is appropriate.
As a fiduciary you must act with prudence and in the best interest of your plan participants. Therefore it is critical for you to understand your responsibilities and required conduct, document your processes, and hire professionals when staff expertise is lacking.
Conducting a 1-hour formal plan review once a year with a fiduciary plan expert will help you document your prudent processes and execution of duties. That one measure will not only help protect you but result in the best plan for employees. A win win.
If you are not getting ideas like this from your current plan advisor give us a call.