As an employer, you have a responsibility to make sure your 401(k) plan is operating correctly and is maintained in the best interest of your employees, which is what being Fiduciary Complaint means. However, let’s be frank - you’re a business owner and not a retirement expert - so it can feel overwhelming when you encounter all the rules and regulations regarding retirement plans. You have to take it seriously because the consequence of a plan falling out of fiduciary compliance is personal liability for any plan losses.
To avoid that result, here are some questions to ask to gauge Fiduciary Compliance:
- Do you have a system in place to document decisions made in regards to the plan and the investments?
- Are those decisions made in the best interest of your employees?
- Do you have a process in place to help educate your employees on those decisions?
- Do you have access to financial experts to help you with investment decisions?
- Do your employees have the information and opportunity to make knowledgeable decisions about saving for retirement.
That’s a lot of responsibility - and a lot of work.
Adding to the complexity is that in less than six months (April, 2017) the Department of Labor (DOL) will officially apply a fiduciary standard that requires all providers of investment advice or recommendations regarding a retirement account to serve the “best interests” of clients. This means the relationship between you and your advisors will change dramatically as they restructure contracts and services to comply with the best interest fiduciary rule.
So, now is the time to deal with the expectations set forth by the DOL. The biggest factor in ensuring your plan is in compliance can be accomplished by adding a 3(38) fiduciary. CoPilot was created specifically for this situation to provide a 3(38) investment manager to alleviate the plan sponsors fiduciary responsibility over investment selection. Simply put, we take the investment selection and monitoring responsibilities away from you by outsourcing fiduciary duties to retirement plan professionals.
CoPilot services include:
- All required criteria to adhere to the new DOL fiduciary standards.
- Fund selection, monitoring and benchmarking.
- Ensuring all plan fiduciaries are ERISA compliant.
- Participant-level fund selection review.
- The development and maintenance of an investment policy statement.
- A plan operating within ERISA safe harbor provisions.
Is CoPilot right for you? Let’s start the conversation. Contact us online or call 800-236-7400 (option 1) today to learn more.