View This Newsletter: Retirement Plan Fiduciary Responsibilities

Overview:

• Who or what is a fiduciary?
  • Being named in the plan document or being appointed as a fiduciary;
  • Exercising discretionary authority or control over plan assets and/or the management of the plan; or
  • Providing investment advice for a fee
• Fiduciary Duties
  • Act with the care, skill, prudence and diligence of a prudent person who is familiar with retirement plan matters;
  • Follow the plan documents;
  • Pay only reasonable plan expenses;
  • Diversify plan investment; and
  • Avoid conflicts of interest and self-dealing in directing plan transactions.
• Consequences of a fiduciary breach
  • Personal liability
  • Error correction programs
• Steps to limit liability
  • Documenting decision-making processes
  • Monitoring plan expenses
  • Letting participants direct their accounts
  • Avoiding prohibited transactions
  • Bonding and insurance
• Administrative responsibilities
  • Timely deposit of employee contributions
  • Reporting and disclosure requirements

This newsletter provides a great overview of plan fiduciary responsibilities. For more information on this topic, visit the Department of Labor (DOL) website Meeting Your Fiduciary Responsibilities.

Pinnacle Plan Design is a third-party administrator (TPA) for employer-sponsored qualified retirement plans. We specialize in retirement plan design, administration and actuarial consulting for 401(k)/profit-sharing plans, defined benefit plans, cash balance plans, and 403(b) plans. Pinnacle Plan Design proudly serves businesses nationwide.