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

Ary Rosenbaum

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.

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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

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Ary Rosenbaum

The Rosenbaum Law Firm P.C. on:

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