As an employer managing a retirement plan can be a daunting task. Few retirement plan administrators have proper training or fully understand their program. At Harman Rogowski & Associates our CPAs and financial advisors specialize in providing independent advice to plan administrators on how to reduce costs, mitigate liability, select investments, and pick the right plan providers.
Here are a four things we think every plan administrator needs to know:
If you are a plan administrator on a retirement plan, sign a form 5500, or sit on an investment committee, you likely have more liability exposure than you realize. Retirement plan lawsuits are a growing issue with fees and investment performance as the most common complaints. Those with exposure often think that lawsuits target company assets, when in reality it is the personal assets of the parties listed above at stake.
Fiduciary liability insurance is one potential option for those with some investment experience. Another option is to outsource investment selection to a 3(38) fiduciary. For retirement plan administrators without investment experience outsourcing liability to a 3(38) fiduciary should be preferred.
Shopping your plan at least once a year can help reduce expenses for plan participants. Make sure to document your RFP process to prove you conducted the proper due diligence. If you do not have the time or expertise to conduct a retirement plan RFP a Harman Rogowski & Associates advisor can do it for you.
We recommend offering participant education as a part of your benefit program. This will help your employees get the most out of your retirement plan. Harman Rogowski & Associates offers on-site participant education. We can also offer your employees financial planning and a guided 401(k) investment management program.