For Employers: Top 10 Fiduciary Responsibilities
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.
1. Limit liability: As a fiduciary, it is imperative that you understand ERISA so you can keep yourself and your business safe from liability.
2. Find the right plan provider: Finding a retirement plan provider is much more complicated than many realize.
3. Keep costs low: No matter how big your business’s budget, always monitor fees to ensure you aren't overpaying.
4. Oversee plan performance: Once a retirement plan is in place, continuously monitor its performance.
5. Educate plan participants: Regardless of position and hierarchy, employees may come to you asking about plan options. What should you say?
6. Stay informed: Your role is to know more about your business’s retirement savings plan than everyone else, so education is vital.
7. 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.
8. Diversify investments: The investment options offered in your plan should be diversified. This limits financial risk and helps balance risks and rewards.
9. 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.
10. Ensure understanding: Make sure employees understand their options and monitor their satisfaction levels.
Questions? Contact us for guidance related to your fiduciary responsibility.