Plan Sponsor Responsibility – A Checklist for Engaging Fiduciaries

Plan governance is one of the key elements of “Defining a retirement plan standard of excellence.” Retirement plans have to adhere to complex regulations and plan documents at all times.

Many employers do not have the time, inclination, or knowledge to effectively govern the retirement plan to make sure all the regulatory and plan document requirements are met on an ongoing basis.

Attached is a checklist designed to assist plan sponsors in evaluating which responsibilities they retain and which responsibilities they outsource.

If a plan sponsor decides to outsource certain responsibilities it is important they document the firm or individual they outsource responsibility to is qualified and able to fulfill the duties delegated to them.

In addition, plan sponsors should determine if they want to engage a fiduciary for advice, a 3(21) fiduciary, or engage a discretionary fiduciary, 3(38) or 402(a) fiduciary.

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