Administering a retirement plan and managing its assets requires certain actions and involves specific responsibilities. As plan sponsor of a retirement plan, such as a 401(k), ERISA considers you a “fiduciary” of your retirement plan. Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. With these fiduciary responsibilities, there is potential liability. Fiduciaries that do not follow the basic standards of conduct may be personally liable.
If you are lacking the expertise in operating your plan or do not have a documented process in decision making for the plan, consider hiring a knowledgeable expert to help. ORBA’s Employee Benefit Plans Group can evaluate whether or not you meet the fiduciary standards of conduct, assess your potential liability and provide needed solutions. We can help educate your current fiduciaries and develop processes to manage your plan in compliance with ERISA.