10 Tips for Maintaining Retirement Plans
September 13, 2023
When it comes to maintaining your retirement plan — and mitigating fiduciary risk — there should be no question that your organization uses best practices. We’ll ask anyway: Are you using best practices to maintain your retirement plan and mitigate fiduciary risk?
When employers fail to meet the Employee Retirement Income Security Act’s (ERISA’s) standard of fiduciary care, or other obligations as defined in the plan documents, they are at risk of penalties and/or legal action. Employers can reduce risk by monitoring the administration of the plan, carefully selecting and assessing investment options, and taking steps to correct any discrepancies between fiduciary actions and obligations.
Get Started With These 10 Best Practices
If you’re not currently using best practices — or you’re unsure if you are — consider these top 10 tips offered by USI Consulting Group (USICG):
- Select and monitor plan investments regularly:
- Set overall objectives and investment strategies
- Consider hiring a co-fiduciary
- Choose appropriate investments that align with your organization’s goals and strategies
- Maintain a diverse set of investment offerings and provide participants with structured/preset portfolios
- Monitor investment performance
- Perform ongoing monitoring and reporting, including on investments and participant activity
- Continuously check and benchmark plan expenses
- Compare your plan to those of others in your industry, geographic location, etc.
- Review costs and plan design to determine which plan features can improve employee participation, pricing, technology, investments and services
- Grasp your fiduciary role and responsibilities:
- Determine the plan’s fiduciaries
- Ensure the plan committee is staffed with qualified members
- Review responsibilities with committee members
- Implement processes and establish procedures to meet plan requirements
- Maintain and monitor the plan’s administration