Adviser Shares Checklist for 403(b) Fiduciary Best Practices

June 15, 2012 (PLANSPONSOR.com) – At the recent PLANSPONSOR National Conference, an adviser shared fiduciary best practices for 403(b) plans.

David S. Hinderstein, founder of Strategic Retirement Group, Inc., shared the following checklist: 

• Governance: 
  • Board resolution to establish retirement plan committee 
  • Plan committee in place 
  • Defined roles/bylaws 
  • Committee members 
  • Scheduled meetings 
   

• Investment Policy: 
  • Written policy in place 
  • Content of policy: 
    • Goals/objectives 
    • Asset classes/benchmarks 
    • Procedures for hiring/firing managers 
    • Fund evaluation process/watch list 
     
   

• Utilization of advisers: 
  • Independent/objective advisers 
  • Defined responsibilities 
  • Written contract 
  • Auditors 
  • ERISA counsel 
   

• Fiduciary process: 
  • Annual review of investment policy statement (IPS) 
  • Ongoing monitoring of investments 
  • Fee benchmarking 
  • Periodic request for proposals (RFP) process 
  • Documentation/minutes 
   

• Investment menu: 
  • Adequate fund coverage 
  • 404(c) compliance 
  • Proper disclosures and notices 
  • Target-date fund selection 
  • QDIA selection and notices 
  • Universal availability 
   

• Investment communication: 
  • Fund fact sheets include investment management fees 
  • Program documented annually 
  • Ongoing participant feedback 
   

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.  

PLANSPONSOR staff
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