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Fiduciaries are personally
responsible for the retirement plans they oversee.
In recent years there have been numerous cases handed
down by the Federal Circuit Courts involving Breach of
Fiduciary Responsibility. The named defendants in these
cases were individuals, not corporations. These named
defendants were fiduciaries of their companies retirement
plans and were sued as individuals for breach of fiduciary
duty. Breach in this context means betrayal- a violation
of their responsibility. These individuals were sued by
their company's employees for not acting primarily for
their benefit.
As a Fiduciary, are you prepared to answer the
following questions?
- Do you have an investment policy statement on file?
- Can you explain and produce the record that supports
the process you followed in arriving at your investment
options for your plan?
- Can you explain and produce the records for the past
5 years that supports the fiduciary monitoring that
was conducted on your plan investments?
- How did you choose your current plan provider? Can
you produce the documentation that supports the process
you followed? Can you provide the documentation that
shows the process you used to reevaluate your current
provider each year.
Most plan sponsors are not even able to produce this
short list of requirements let alone the entire list of
requiremets to maintain their plan as a 404c compliant
plan. This puts them at risk, risk that can easily be
mitigated by having the right fiduciary advisor!For a
confiential conversation on how to minimize your risk
of fiduciary liability, please contact us at
(858) 547-1810.
(click here for more information)
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