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Fiduciary Due Diligence

Fiduciary Due Diligence

The ERISA Act of 1974 set the standards of conduct for Fiduciaries who manage an employee benefit plan and its assets.  Over the last several years there has been an uptick in lawsuits against Plan Sponsors and Plan Fiduciaries for failure to meet their fiduciary responsibilities.  These responsibilities include:

  • Act solely in the interest of plan participants
  • Carry out their duties prudently
  • Follow the plan documents
  • Diversify plan investments
  • Pay only reasonable fees

We help mitigate fiduciary risk by implementing a fiduciary process and documenting committee oversight activities.

Fiduciary Process includes:

(1) Fiduciary Investment Consulting

  • Recommendation to establish/revise the Plan’s Investment Policy Statement
  • Recommendations to select and monitor plan investment options
  • Recommendations to select and monitor qualified default investment alternatives
  • Serve as a 3(21) co-fiduciary and partner with 3(38) investment managers

(2) Service Provider Analysis and Management

  • Quantitative Due Diligence to minimize cost
  • Qualitative Due Diligence to match plan objectives to provider resources
  • Management and oversight of service delivery to make sure the plan is being run as efficiently as possible

(3) Fee Monitoring

  • There has been a lot of litigation around 401k plans almost all having to do with fees.  For years many people thought 401k plans were “free” when in fact the fee structures were very complicated leading to a lack of transparency.
  • Through our fee monitoring we will:
    –  Create a fee policy statement
    –  Help determine if your fees are reasonable
    –  Create more transparency around the fees being paid, including uncovering and identifying any revenue sharing arrangements
    –  Determine if plan expenses are being shared equally among plan participants

Maryland Office
8161 Maple Lawn Blvd, Ste 400, Fulton, MD 20759
Phone: 301-543-6000 Toll Free: 888-740-3501

Virginia Office
2247 W. Great Neck Rd, Ste 201, Virginia Beach, VA 23451
Phone: 757-271-8824 Toll Free: 888-740-3501

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Planning Solutions Group, LLC