Did you ever notice that when a state trooper has someone pulled over with lights flashing that everyone slows down?  Are we all guilty, or is it just that we realize that in today’s complex world that the person at the side of the road looking sadly into his windshield could easily be us.

The same is true for the 401 (k) Plan Trustee.  The regulations are compounding.  Your ability to keep up with them all is virtually impossible.  The focus for the Trustee is no longer which investments should I choose, but rather, Am I at risk for breach of fiduciary responsibility.

Since May of 2015, when the Supreme Court gave participants in a retirement plan standing before the court to sue the plan, the courts have been flooded with lawsuits.  Granted most of them settled, but the cost to the plan and the trustee is significant even if you win.

Here are three things that could target your plan:

  1. Failure to do periodic regulatory compliance reviews;
  2. You have proprietary funds on your investment menu; or,
  3. You don’t remember when you last benchmarked your plan.

You can read Nevin Adam, JD, article on the subject here.

To learn more about the 401(k) Shield, click here, or contact me:   I would gladly brief you on our services.

Submitted by David M. Wheat, ChFC | August 29, 2016