3. Has a well-defined investment policy:
It is imperative that all plans have an investment policy with a clear process on how it operates and makes decisions, a sometimes overlooked critical consideration. It is the employer, not the provider, who is charged with the overall responsibility of managing the plan’s assets prudently on behalf of the employees, participants and beneficiaries.
No protection in case of litigation. (If you feel like reading about a legal precedent, the February 2008 Supreme Court LaRue decision is sourced below)
Having researched the market, hiring a brand name either directly or through an independent advisor may be not be the safest or best decision. Time spent to find the right consultant, that helps protect you from potential liability, and that knows how to optimize fees and costs, will be well spent for your employees’ benefit and your peace of mind.
Sources for additional information:
- Employee Benefit News – Helping benefit plan sponsors put information into action
- Granite Group News – 401K Industry news insights