PSCA Offers Plan Sponsor Education About Third-Party Fiduciaries

Topics discussed include how often plan sponsors should review their third-party fiduciaries.

The Plan Sponsor Council of America (PSCA) has published an article and a two-part podcast on third-party fiduciaries.

Stephen Abramson, president of APS Pension Services and author of “Advisor’s Guide to Qualified Plans” and co-author of “Plan Smart, Retire Rich,” wrote the article for DC Insights Magazine and sat down with PSCA executive director Tony Verheyen for a two-part interview.

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Topics discussed include:

  • How often plan sponsors should review their third-party fiduciaries;
  • What plan sponsors are doing to become better fiduciaries; and
  • How retirement plan managers can convince plan fiduciaries to take their responsibility seriously.

“This is an important topic given the Department of Labor’s new fiduciary rule and intensifying scrutiny of fiduciaries in the courts,” says Stephan McCaffrey, senior counsel for National Grid and PSCA Board Chairman. “We encourage readers and listeners to understand the nuanced world of fiduciary services, to educate colleagues about the role and importance of the fiduciary, and to lead their organizations through conversations about whether outsourcing fiduciary services will work for the organization.”

To read Abramson’s article and listen to his discussion with Verheyen, follow these links:

PSCA also offers a formal, three-hour online fiduciary training program to members and non-members. The program will contain information related to the Department of Labor’s fiduciary rule in 2017. Click here for more information.

IRS Published Guide for Automatic Enrollment 401(k) Plans

“Automatic Enrollment 401(k) Plans for Small Businesses” can be used by sponsors of automatic enrollment 401(k) plans to educate themselves about how to operate the plan and stay in compliance with laws and regulations.

The Internal Revenue Service has published a document, “Automatic Enrollment 401(k) Plans for Small Businesses.” 

The booklet discusses why a small business would want to adopt an automatic enrollment 401(k) plan as well as how to establish one.

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It also explains details of operating an automatic enrollment 401(k) plan as well as plan sponsors’ fiduciary responsibilities. It includes discussions about hiring and monitoring service providers and about required disclosures to participants.

The booklet includes an automatic enrollment 401(k) plan checklist.

The document can be used by sponsors of automatic enrollment 401(k) plans to educate themselves about how to operate the plan and stay in compliance with laws and regulations. It can also be used by advisers in helping them educate plan sponsors about such plans as well as to help plan sponsors set up an automatic enrollment 401(k) plan.

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