Mitigate Risk and Gain Peace of Mind With Fiduciary Training
March 9, 2023
Between the continuing uptick in Employee Retirement Income Security Act (ERISA) litigation targeting retirement plans and the dozens of new requirements of the SECURE 2.0 Act, you may be feeling a bit overwhelmed trying to understand your current fiduciary responsibilities.
Knowing your fiduciary obligations is critical to mitigating risk for your organization and yourself. At the company level, failing to meet all fiduciary requirements can lead to consequences, including exposing the organization to litigation risk ranging from hundreds of thousands to several million dollars. There is also a liability concern at the individual level, as fiduciaries are required to act in the best interest of plan participants.
Fiduciary training is an essential part of the solution.
Training is a Best Practice
The Department of Labor (DOL) considers fiduciary training a critical element of prudent oversight and is increasingly looking for evidence during audits that such training has been provided. Retirement plan administrative committee members are strongly encouraged to receive training on the practices and processes needed to fulfill their fiduciary obligations to plan participants. It is the fiduciary duty of the employer to protect the interests of their employees and retirees in their benefit plans.
Having a clearly documented process for making administrative and investment plan decisions is considered best practice by the DOL – and that process can bring peace of mind to the employers and fiduciaries. The solution to understanding current roles and responsibilities is through fiduciary training and a fiduciary governance self-review.
ERISA fiduciary responsibility imposes a high standard of care and loyalty on those responsible for managing retirement plans.
USI Consulting Group (USICG) helps employers understand their roles and responsibilities by educating them about ERISA fiduciary obligations, developing processes, avoiding conflicts of interest and maintaining documentation. Equipping your retirement plan committee with comprehensive fiduciary training is essential to minimize fiduciary risk.
USICG provides three levels of fiduciary training: