Compliance June 15, 2012

Adviser Shares Checklist for 403(b) Fiduciary Best Practices

June 15, 2012 (PLANSPONSOR.com) – At the recent PLANSPONSOR National Conference, an adviser shared fiduciary best practices for 403(b) plans.
Reported by
Add as a preferred source on Google

David S. Hinderstein, founder of Strategic Retirement Group, Inc., shared the following checklist: 

  • Governance: 
    • Board resolution to establish retirement plan committee 
    • Plan committee in place 
    • Defined roles/bylaws 
    • Committee members 
    • Scheduled meetings 
     
  • Investment Policy: 
    • Written policy in place 
    • Content of policy: 
      • Goals/objectives 
      • Asset classes/benchmarks 
      • Procedures for hiring/firing managers 
      • Fund evaluation process/watch list 
       
     
  • Utilization of advisers: 
    • Independent/objective advisers 
    • Defined responsibilities 
    • Written contract 
    • Auditors 
    • ERISA counsel 
     
  • Fiduciary process: 
    • Annual review of investment policy statement (IPS) 
    • Ongoing monitoring of investments 
    • Fee benchmarking 
    • Periodic request for proposals (RFP) process 
    • Documentation/minutes 
     
  • Investment menu: 
    • Adequate fund coverage 
    • 404(c) compliance 
    • Proper disclosures and notices 
    • Target-date fund selection 
    • QDIA selection and notices 
    • Universal availability 
     
  • Investment communication: 
    • Fund fact sheets include investment management fees 
    • Program documented annually 
    • Ongoing participant feedback 
     

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. 

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

 

«