Sponsor Education

Anyone who has assumed fiduciary duties of the 401(k) plan must be knowledgeable about many aspects of the plan – if you are the employer, a member of the Board of Directors, a plan trustee, a named fiduciary, serving on the 401(k) investment committee or an employee in the HR department you are likely a fiduciary.

Here is a checklist of questions that a plan fiduciary should be able to answer:Are all plan fiduciaries legally able to serve in a fiduciary capacity?Have all plan fiduciaries signed a document accepting their responsibilities and risks.

• Are all plan fiduciaries legally able to serve in a fiduciary capacity?

• Have all plan fiduciaries signed a document accepting their responsibilities and risks?

• Are all fiduciaries properly covered for those risks?

• Are all responsibilities identified, assigned, and being tracked?

• When was the last time the plan was benchmarked for costs, level of participation, eligibility, investment fund quality, salary deferrals or account balances?

• Does the plan have a proper Investment Policy Statement (IPS) and is it being followed?

• Is the Investment Policy Statement (IPS) outdated?

• What is the process by which investment options are selected?

• When was the last time the investment options were monitored? Who did it and how was it done?

• Has the investment performance been benchmarked by an independent third party?

• Has the process of selecting and monitoring the investments been documented?

• Are the plan documents in order for the IRS or Department of Labor?

• Have all revenue sharing arrangements, commissions, finder’s fees, 12b-1 fees, sub-transfer agent fees, SEC Rule 28(e) Soft Dollars, wrap fees, and/or investment management fees been indentified and justified?

• Who is actively monitoring the plan?

• Does the plan have a written Education Policy Statement identifying the communication goals, calendar, and who is responsible for each task?

As the sponsor’s advocate and an educator, Stonegate sponsor benefits can:

• Help participants to better utilize and appreciate company retirement benefits and the overall benefit package.
• Tailor our menu of services to meet the needs of a plan sponsor.  Educational sessions can be provided, and financial planning services for employees (whether or not they choose to seek 401(k) advice).
• Provide your company with access to professional, fee-only financial advice at an affordable price, without the product sales and potential conflicts of interest that can arise when using provider representatives or commission-based financial advisors.
• Alleviate some of the financial stress being felt by participants surrounding their 401(k) accounts and their readiness for retirement.
• Ensure that you and your investment committee are able to thoroughly conduct and document your responsibilities as a plan fiduciary.