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What responsibilities do I have as a retirement plan sponsor?

What responsibilities do I have as a retirement plan sponsor?

If you decide to offer a qualified defined contribution plan, you have the noble and rewarding responsibility of helping your employees potentially achieve a more secure financial future. But what does this fiduciary responsibility involve?

ERISA (the Employee Retirement Income Security Act of 1974) exists to make sure any plan fiduciaries are making prudent decisions about the plan solely in the interests of your employees. The guidelines lay out the following pillars by which fiduciaries are judged:

  • Duty of loyalty—putting plan participant needs above all others
  • Exclusive benefit—holding, transacting, and managing plan assets for the exclusive purpose of providing benefits and defraying reasonable expenses of plan administration
  • Duty of prudence—acting with care, skill, prudence and diligence when conducting plan business
  • Duty to diversify investments—diversifying investments to help minimize the risk of large losses
  • Duty to follow plan documents—following plan documents as long as the documents are in accordance with ERISA
  • Duty to monitor investments—monitoring the plan’s investment performance and ensuring alignment with the investment policy statement. This also includes replacing investments as needed.

How can Nationwide help?

Nationwide provides resources and support to help plan fiduciaries of all kinds fulfill their responsibilities. Many of these resources can be used with your plan’s financial advisor, plan administrator, or legal counsel to help ensure the continued success of your plan. Call 1-855-826-5470 for more information.