Best Practices for Plan Sponsor and Fiduciary Oversight Committees

For qualified retirement plan sponsors, the fiduciary responsibility is tremendous since ERISA (Employee Retirement Income Security Act) requires the plan’s fiduciaries to be “Prudent Investment Experts” -- whether they are prepared to be or not. Failure to perform up to this standard can lead to both corporate and personal liability.

SD Retirement Plan Solutions understands this fiduciary liability exposure and has developed detailed solutions and processes to manage this responsibility beginning with positioning its business model to function either as an ERISA section 3(21) or 3(38) fiduciary depending upon the oversight involvement and retained responsibility desired by the plan sponsor.

Our independent, unbiased approach will help you implement a formal due diligence process that outlines and documents fiduciary focus areas and responsibilities for various evaluation and monitoring activities, including:

  • Constantly analyzing plan design to maximize synergy with the plan sponsor’s business plan, financial situation and human resources needs and goals.
  • Formalizing the plan’s Investment Policy Statement (IPS) to provide investment result measurements against IPS criteria to better evaluate and understand base investment menu performance and alternative asset management strategies.
  • Utilizing a disciplined framework for selecting and monitoring investment alternatives.
  • Using proactive plan analytics to benchmark participant utilization metrics and behavior.
  • Conducting a full and detailed review, disclosure and benchmarking of fees at both the plan sponsor and participant level.
  • Providing Fiduciary Committee meeting documentation that summarizes each agenda, discussion points, attendees, action items generated, time tables for implementation of decided upon action items and responsible parties.

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