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

Ary Rosenbaum
Contact

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:

Ary Rosenbaum
Contact
more
less

The Rosenbaum Law Firm P.C. on:

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:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.