The retirement crisis will not go away by plan sposnors ignoring the plan. A periodic review by an independent fiduciary will minimize the plan sponsors fiduciary risk and provide an excellent plan for their employees. This small function will help employers attract and retain talented employees.
Although plan executives “have significant concerns about their retirement plans, relatively few are taking all the steps available to fully manage these risks,” said the report on a survey of 245 plan executives. “Additionally, organizations are tackling some issues reactively rather than proactively.”Sixty-two percent said they will conduct a review if they or one of their advisers “identifies events that suggest new risks,” the report said, while 49% will conduct a review if they receive notice of a pending audit from the Internal Revenue Service or Department of Labor.
Although sponsors “tend to spend a fair amount of time” on assessing investments, “they spend less time on compliance of plans and operations,” Robyn Credico, Towers Watson senior consultant and defined contribution practice leader for North America in Arlington, Va., said in an interview. Ms. Credico is one of the report’s authors.
The small to mid sized firms have a tendency to ignore the compliance issues of their company retirement plan. Most mistakenly believe their service provider is handling this for them. This mistake can cost them and their employees.
Please comment or call to discuss how this affect you and your company plan.
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