It’s not a secret that fiduciary committee members are busy. But they should never be too busy to look out for participants. When lawsuits about 401(k) plans happen, it is usually because a plan didn’t get the focus it needed for participants to have the outcome they deserve. It is, unfortunately, common for critical plan errors to occur and participants to suffer the consequences. In a FiduciaryNews article, “5 Big Overlooked Fiduciary Errors 401k Plan Sponsors Are Making Right Now,” author Christopher Carosa highlights major mistakes fiduciaries are making in our industry today.
Brian Allen, CFP®, founder and chairman of Pension Consultants, Inc. and author of Rewarding Retirement: How Fiduciary Committees Can Elevate Workers, Companies, and Communities, contributed his perspective to the article. “One of the most overlooked ERISA problems facing 401k plan sponsors right now is the lack of a clear goal or purpose for their plan and as a result, their fiduciary oversight. The goal of plan management and oversight should be to get participants on track for retirement,” Allen reflects.
His simple fix for fiduciaries: use defined, clear, and objective measurements to determine the effectiveness of the plan they oversee. These 3 key drivers should help every fiduciary committee member know if they provide a plan that helps participants retire on time with dignity:
1) the right amount being contributed,
2) strong investment returns, and
3) low fees.
Allen discusses these drivers and how to overcome this common fiduciary challenge in the full article.
Are you a fiduciary committee member looking to avoid common oversight errors and offer your participants a Rewarding Retirement? Success starts with having the right tools.
Get a copy of Brian Allen’s book, Rewarding Retirement: How Fiduciary Committees Can Elevate Workers, Companies, and Communities, and learn how to build your fiduciary toolbox at www.rewardingretirementbook.com.