Outsourced Retirement Plan Responsibilities

‍

Today we will be discussing the responsibilities of an outsourced retirement plan sponsor.

Companies are more frequently turning to experts to manage retirement plans like the 401(k). Even with this expert help, it's vital for companies, or "plan sponsors", to ensure these professionals are fulfilling their roles appropriately. The aim is to guarantee that everyone partaking in the company retirement plan receives the benefits they expect and deserve.

To ensure this, plan sponsors should consistently evaluate two main areas:

First, they must determine if the expert is fulfilling their responsibilities. This involves understanding the main tasks the expert is meant to perform, verifying they're completing these tasks, ensuring open communication for addressing any concerns, and comparing their fees to ensure fairness in the market.

Secondly, it's essential to evaluate the stability and reliability of the expert or service provider. Plan sponsors should check if the expert has had any significant legal challenges, confirm their financial stability and insurance provisions, ensure they adhere to the latest cyber security measures, and verify their consistent leadership and breadth of experience with multiple retirement plans.

Documenting the findings from these evaluations can be crucial, especially if the Department of Labor decides to review procedures or in the case of any potential legal disputes.

Remember, even if experts are involved, companies must always ensure they're dependable and performing their roles efficiently.

If you would like more information on Outsourced Retirement Plan Responsibilities, contact us today.