If you exercise discretionary authority, control or responsibility over the management or administration of any part of your company’s retirement plan; or if you provide investment advice with regard to the plan, you are a fiduciary. As such, you must have a full and complete understanding of the role you play as well as your responsibilities as a fiduciary. After all, whether you know it or not, as a fiduciary of your company’s plan, you are held to the high standards outlined in the Department of Labor’s Employee Retirement Income Security Act (ERISA).
Unfortunately, not all fiduciaries are well-versed on ERISA-related matters. In fact, it’s not uncommon for those in this role to be unaware as to what their fiduciary responsibilities are. Meaning, in addition to other ramifications, these individuals are at risk of personal liability, which carries stiff penalties.
That’s not to say that those who are aware of their fiduciary responsibility are crossing all their “t’s” and dotting all their “i’s” – quite the contrary. Actually, even though one’s role as a fiduciary is critical, it’s not always high up on the list of priorities, especially when you’re busy managing the day-to-day operations of the business.
The following six tips will not only help you understand your role as a fiduciary a little bit better, they will help you keep your fiduciary responsibilities top-of-mind, which will also help you get to the top of your fiduciary game.
Read Also: Department of Labor Finalizes Fiduciary Rule
Six Tips To Keep Your Fiduciary Responsibilities Top-Of-Mind
Yearly Checklists
Having a detailed checklist or guideline of tasks is a simple but effective way to ensure that everything that needs to be done gets done. Consider having one of your advisors, or an ERISA attorney, help you create this checklist.
Read Newsletters And Subscribe To Blogs
Free newsletters and blogs with updates on requirements and developments are readily available. For fiduciaries looking for timely insight, this is a great way to stay abreast of happenings in the retirement plan industry. Start your search for content on Google. Before long, you’re sure to discover a wealth of expertise at your fingertips.
Attend Webinars
Many professionals overlook the power of the webinar. These are easy and convenient ways to obtain valuable information; and oftentimes you can find them for no or low cost.
Schedule A Fiduciary Training Session
Your plan auditor is sure to ask you whether you’ve had fiduciary training. The easiest way for you to be prepared for this question is to show them your proof. After conducting training meetings with your advisor or ERISA attorney, save the written materials of what was covered in the sessions and store them in your records for future inquiries.
Regularly Check The Department Of Labor’s Website
You’re sure to find a wealth of information in the Employee Benefits Security Administration portion of the Department of Labor’s website. Throughout this section, you’ll gain access to trusted resources on issues covering a wide range of topics that, as a plan sponsor, you should have at least basic knowledge on.
Write Down Your Goals
Writing down your goals will provide you with a guide for moving forward. Once on paper, you can put together a plan for completing your responsibilities and can hold yourself accountable throughout the process.
As a fiduciary, you are expected to balance a significant workload and ongoing commitments – in addition to your other responsibilities. But hopefully these tips will keep your fiduciary responsibilities top-of-mind throughout the year. Email Rea & Associates to for additional tips and insight.
By Paul McEwan, CPA, MTax, AIFA (New Philadelphia office)
Check out these articles to learn more about the responsibility associated with being a retirement plan sponsor:
Fiduciary Responsibilities Under New Rule
Retirement Plan Sponsors: Do You Know What You’re Paying For?