Summer Homework for Fiduciaries

Summer Homework for Fiduciaries

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Summer Homework for Fiduciaries

Morgan Davis, Plan Advisor

As you bask in the glory of summer over the next couple of months, don’t forget the three Fs that define this cherished season — fun, Fourth of July, and fiduciary! While you’re enjoying the fruits of summer, don’t forget your fiduciary responsibilities! Ask yourself the following questions to make sure you are on top of your responsibilities and liabilities.

1. Are you practicing procedural prudence when making plan management decisions?

2. Do you clearly understand the DOL’s TIPS on selecting and monitoring your QDIA in order to obtain fiduciary protection?

3. Are you documenting each plan management decision and its support?

4. Are you familiar with current trends in fiduciary litigation?

5. Are you certain that your plan is being administered in accordance with your plan document provisions?

6. What fiduciary liability mitigation strategies are you following? (Fiduciaries are personally financially responsible for any fiduciary breaches that disadvantage participants.)

7. Are you kept abreast of regulatory changes?

8. Are you appropriately determining the reasonableness of plan fees, services, and investment opportunities?

9. How do you define “success” for your plan and what metrics do you use to track progress?

10. Is your current plan design communicating the appropriate messaging to encourage success for your participants and plan fiduciaries?

11. Is your menu efficiently designed for the fit of participants and plan fiduciaries?

12. Are you certain you are providing all required communications and distributions to plan participants (including former participants with account balances)?

13. Are you handling missing participants appropriately?

14. Are you appropriately monitoring and documenting your fiduciary activities and those of your service providers?

15. Are you maintaining plan records appropriately?

Many fiduciaries are unaware of their fiduciary responsibilities or do not understand them. As you contemplate these important questions while staying cool this summer, if you need help uncovering the answers to any of these important questions, do not hesitate to contact an advisor. 

About the Author, Morgan Davis

Morgan is responsible for guiding plan sponsors through the intricacies of investment analysis and innovative plan design and making it easy to understand. Blending employer and employee objectives, Morgan encourages plan design initiatives to create optimal retirement plan outcomes for participants. Morgan is a graduate of Michigan State University where she earned a Bachelor of Arts in marketing.