So how do you know what risk you are taking on as an employer in administering your retirement plan? Well, that depends on how your plan document was written, what processes are in place, and if you have delegated in writing any of the fiduciary responsibilities for your plan. (Many people don’t even know you can do that!)
I know it sounds a bit confusing, but we are talking about regulations written by our federal government, so of course it can’t be simple! Therefore, to effectively manage the fiduciary risk that is part of providing a retirement plan, it all starts with the design and the service providers that you choose to manage the various tasks of operating a plan. Believe it or not, this is very similar to how you manage other parts of your business, including hiring legal and accounting experts as needed.
So to manage your fiduciary responsibility, first determine your current risk by having a fiduciary review with one of our Certified Financial Planners™. Second, develop an action plan to resolve any issues that currently exist. The federal government is most concerned with employers doing their best to monitor, and correct any problems that are discovered, so this is a great process to make that happen.