Want to be at risk for an intense audit, expensive correction, or litigation? We didn’t think so. In the past few years, an increase in lawsuits for 401(k) fiduciary breaches have occurred and resulted in tens of millions of dollars in settlements for the organizations involved. Don’t let that happen to yours.
Here are three signs your organization may need help with its fiduciary practices:
- You have no formal investment committee. Having an established formal investment committee with a developed statement and performance measurement standards is critical. This helps you to establish documentation t
- You lack a documentation process. Documentation maintenance and support is critical. From reviewing important documents like your Summary Plan Description to providing ongoing support for document amendments, lack of a defined process puts you at risk for failing an audit.
- You don’t have fiduciary liability coverage or have coverage that is not sufficient. Fiduciary liability insurance may sound complicated, but it’s one of those things you’d rather have on hand than be caught without. It fills in gaps often found in traditional coverage plans. And if you do have it, do you have enough? Periodic coverage review is crucial to your organization’s bottom line. Remember, governing committee members can also be held personally liable.
These three best practices are must. And frankly, there are a few more. But like we said, if you don’t have these, you need help and you need it now. So scream! At Alliant. Our retirement consulting practice offers more than experience and knowledge.
Visit alliantretirementservices.com today.
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That’s the Alliant difference.