If you’re sponsoring a 401(k) plan, you have a duty of loyalty and a duty of prudence to your participants and their beneficiaries.
What does that mean? You must have a repeatable process and the selection and monitoring of your plan’s investment options. This means you need to hire and fire investment managers if they’re not performing up to a certain standard. You must also make sure that all management fees are reasonable. This includes the record keeper, the auditor (if applicable), the financial advisor, and the administrators.
How do you do this? Each year when we meet with our clients, we use independent, third-party data to show if the plan is in line with industry standards. Every three to five years, we take the plan out to RFP and get live bids from other providers to make sure participants and their beneficiaries are getting the best bang for their buck.
If you’d like to receive a free, live benchmarking analysis of your current plan or you’d like to schedule a call or meeting, please click the link above.
If you have any questions regarding your role as a fiduciary, contact us directly by phone or email. We would be happy to take a fresh look at your current plan. In the meantime, we’ll see you on our next video.