The Need for Plan Sponsors to “Tune-Up” their Retirement Plans

more+
less-

Taking care of a retirement plan is like taking care of a car, a plan sponsor has to perform maintenance of their retirement plan. Too many plan sponsors have a “drawer mentality” when it comes to their retirement plan, they put it in the back of their drawer and forget it. This type of mentality exposes the plan sponsor to potential liability because neglect of a retirement plan is a breach of a plan sponsor’s fiduciary duty as a plan sponsor. A plan sponsor needs to review the plan on an annual basis to determine whether the retirement plan they have in place still works for them. The plan sponsor has the fiduciary responsibility to conduct a plan tune-up to see if the plan’s documents, administration, fiduciary process, and expenses are in order. In addition, plan sponsors also need to review their plan providers to ensure that they are diligent in their duties because despite the plan sponsor’s delegation of duty to their providers, plan sponsors are still on the hook for liability as a fiduciary.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ary Rosenbaum, The Rosenbaum Law Firm P.C. | Attorney Advertising

Written by:

more+
less-

The Rosenbaum Law Firm P.C. on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×