inside the plan sponsor’s mind | fall 2023
Trouble Lurking for 401(k) Plan Participant Retirees
A danger when retirees can least afford it is an ill-timed, significant loss occurring immediately after they begin plan distributions. By Steff Chalk
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lan sponsor trustees hold the “power seat” for retirement plan participants by providing oversight for plan investments. It’s seen in the names, titles, and job functions historically cited in fiduciary
breach lawsuits. ERISA comes with rules, regulations, and a rudimentary roadmap. When a plan fiduciary lacks the required knowledge to serve as an ERISA fiduciary, it creates a fertile hunting ground for lawsuits. Fortunately, regulators largely
support plan fiduciaries engaging prudent professionals when they lack the requisite expertise. After a retirement committee engages a team of experts to orchestrate the plan’s duties, it seems all appropriate boxes are checked. An inexperienced
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