The confluence of the arrival of the "Boomer" generation to retirement, the increase in litigation regarding the management of employer retirement plans, and heightened consumer skepticism of the role of advisors has resulted in an environment in which employers need to take greater control of the retirement plans they are making available to their employees.
In the latest fi360 Article Competition entry, AIF designee John Sullivan of World Equity Group presents four major questions plan sponsors need to ask of themselves and the plan they are offering in order to limit their own liability and provide a retirement vehicle that truly works for the participants:
- Is there a process in place to manage the plan that is written, current, properly executed, and consistent with the “Prudent Man” rule? In other words, is the retirement plan managed as well as your business and with the same care?
- Are the plan assets used solely for the benefit of the participants and their beneficiaries?
- Are the investment choices prudent?
- Does the plan provide retirement income security for our employees?
With what is at stake both for the employer and employee in regards to a company retirement plan, why wouldn't you treat it with the same careful consideration and prudent execution that you do your business?
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The winner of the article competition receives a $1,000 prize at our 2010 National Conference. For more information on the fi360 article competition and to download other entries, visit the article competition home page.
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