Protect 401k Sponsors With Fiduciary Liability Secrets
Implementing Best Practices for Fiduciary Responsibility
Beyond insurance, adopting best practices in plan management is essential. Regularly reviewing and updating your plan's investment options is a crucial step in fulfilling your fiduciary duties. This includes evaluating the performance of each investment option and comparing fees against industry benchmarks. Engaging with a third-party advisor can provide valuable insights and help ensure that your plan remains competitive and beneficial for participants2.
Additionally, maintaining thorough documentation of all decisions and processes related to the plan is vital. This documentation can serve as evidence of your diligent management and decision-making in the event of a legal challenge. According to a recent survey, over 75% of plan sponsors who faced litigation cited inadequate documentation as a key issue in their defense3.