Did You Know You Are a Fiduciary?

When it comes to fiduciary responsibilities for qualified retirement plans, there are three key points to understand:

• As a plan sponsor, you are, by definition, a fiduciary because you exercise control over and act on behalf of your plan.
• Some plan sponsors may not realize their fiduciary status, despite efforts to clarify this role.
• Failing to properly execute fiduciary responsibilities carries serious consequences for plan sponsors.

There are a few reasons why fiduciary misunderstandings happen. Despite our efforts to communicate clearly about fiduciary roles, there can be a gap between what we share and what busy clients retain. Some may also assume their service providers are fully handling fiduciary responsibilities. Additionally, some plan sponsors think that by outsourcing certain duties, they are relieved of all fiduciary obligations, which isn’t the case.

To help keep your plan compliant, we suggest reviewing the fiduciary status of all service providers to whom you’ve outsourced tasks. This can clarify any issues and deepen your understanding of your fiduciary obligations.

Let’s work together to help you meet your responsibilities, avoid issues, and keep your plan on track for long-term success.