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Fiduciary Responsibility

Fiduciary Responsibility . What is a Fiduciary?. Has control of retirement funds and/or investment options in a 401(k) Plan; Gives investment advice; or Has responsibility over administration of the retirement plan. ACCE Benefit Trust is the Named Fiduciary in the 401(k) plan documents.

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Fiduciary Responsibility

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  1. Fiduciary Responsibility

  2. What is a Fiduciary? • Has control of retirement funds and/or investment options in a 401(k) Plan; • Gives investment advice; or • Has responsibility over administration of the retirement plan. • ACCE Benefit Trust is the Named Fiduciary in the 401(k) plan documents. • You are also a fiduciary as Participating Employer!

  3. Fiduciary Duties • Operate the plan in the sole interest of the participants. • Act with care and diligence. • Diversify plan investments to reduce risk and satisfy 404(c) requirements. • Operate the plan in compliance with federal regulations. • Submit contributions as per DOL guidelines.

  4. How is Benefit Trust a Fiduciary? • Selects and monitors the plan investment options on a quarterly basis; utilizes an outside, unbiased investment consultant. • Reviews regulatory updates to ensure plan is maintaining compliance with federal legislation; utilizes top ERISA firm in the country as plan council. • Maintains Fiduciary Liability Insurance policy for the selection and ongoing monitoring of investments. • Oversees annual independent audit.

  5. What is your role as Fiduciary? • Educate your participants about the benefits of the plan. • Do not engage in any investment related discussions! This could be construed as providing financial advice. • Submit contributions as per DOL guidelines. • Administer the plan according to the procedures outlined in the ACCE Plan Administration Manual. • Retain records as required by law.

  6. Ways to Limit Fiduciary Liability • Offer diverse investment options and let participants control how their money is invested √ • Comply with 404(c) √ • Provide proper annual notices to participants (i.e. QDIA, SMM and Safe Harbor) √ • Appoint investment manager √ • Fidelity bond √

  7. What is a Bond? Do we Need One? • All employers must have a Fidelity Bond that covers at least 10% of plan assets or $500,000 (whichever is less.) • Can be referred to as a “fidelity insurance policy” or “ERISA bond” • Protects the employer against the loss of plan assets due to fraud or dishonesty. • Fiduciary liability insurance is optional, but ACCE recommends for all employers. • Refer to the ACCE Plan Administrator Manual for additional information.

  8. Questions? • The ACCE Benefits Team • Shonda Norris -10 years experience • Susan Aura - 5 years experience • Colleen Logan - 11 years experience • Stacey Breslin - 16 years experience • Available Monday through Friday from 8:30 am – 5:00 pm ET

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