The Dept of Labor, which oversees retirement plans, publishes a brochure entitled Meeting Your Fiduciary Responsibilities, i.e. those that come along with oversight of a retirement plan. While the DOL has published a lot and there is a lot to keep up with, this is a pretty simple and straightforward introductory brochure that I highly recommend as a starter.
You’ll see that anyone that has a say in how the plan is managed or who is hired is a fiduciary with attendant responsibilities and liabilities. It matters not who signs the 5500 form or who does the research, everyone with a vote is a fiduciary, so all who do should read this.
Pay particular attention to:
pg. 3 – Limiting Liability
pg. 5 – Hiring a Service Provider
pg. 6 – Monitoring a Service Provider
You’ll notice that the DOL, like all government agencies and auditors is big on documentation. In the DOL’s case, special emphasis is put on the oversight process and reasonable fees.
If you’d like help on understanding your responsibilities, how best to go about that and how to properly document it in order to stay on DOL’s good side (a good idea), let me know.
daveh@cornerstoneinvestment.com