Often times, when we are engaged by our new clients to assist them with overseeing their organization’s retirement program(s), we often find that they are unfamiliar with their fiduciary responsibility. Here are a few simple questions to assist you in determining if you may be considered a plan fiduciary:
What’s most important is that whether by title or by action, an individual sponsoring a workplace retirement plan is commonly regarded as a plan fiduciary. Few fiduciaries understand how easy it is to invite a lawsuit from a plan participant. In a civil action, the claimant does not need to prove criminal or fraudulent intent – mere negligence may result in a violation of their fiduciary responsibility.
Here are some examples of where plan sponsors too often can be found negligent:
At Brio, we understand that some of these responsibilities can seem daunting; particularly when you have so many other responsibilities in your day-to-day job functions. That’s why recent statistics show that roughly 93% of Plan Sponsors have engaged an Advisor to assist them in mitigating their fiduciary risks. Do you have a Registered Investment Advisor working with your company to see that your retirement plan(s) is operating per the parameters written in the plan document? Are you currently reducing your exposure to risk by consulting with an RIA to develop and amend policies and procedures for the plan? Don’t risk a worst case scenario. Brio is experienced, and focused on assisting you in achieving your plan goals and objectives, while also minimizing your exposure to potential fiduciary risks as much as possible.