Establishing an Investment Committee for 401(k) Plans

Plan sponsors have a fiduciary responsibility to manage the investment options offered to participants. ERISA requires that these investments be monitored on an ongoing basis for appropriate use and continued prudence. In order to ensure this happens, plan sponsors should establish an investment committee to oversee and manage all investment processes for the plan. The …

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What Does One Look for When Reviewing A SAS 70 Report?

When one receives a third party administrator’s SAS 70 report, there are a few things he or she should know about the information that is being provided to them in order to gain the maximum benefit from reviewing the report. There are two types of service auditor’s reports. The two types of reports provided in …

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The Importance of Monitoring Your TPA

Oftentimes during a 401(k) plan audit, the employer will respond to various questions about their plan with the answer “Our TPA handles all of that for us.” Indeed it is very common for plan sponsors to hire third-party administrators (TPAs) to manage some of the plan’s day-to-day operations. While there is much to be gained …

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Selecting Third Party Administrators

The act of hiring a third party administrator (“TPA”) is one of the responsibilities of a Plan Sponsor. One of the first steps in this hiring process is to sit down with your Plan Committee and determine what exactly your needs are in a TPA. Does your Company have specific situations that will need to …

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Streamlining of the Automatic Enrollment Process

Now more than ever it is imperative that the American family starts taking a closer look at their financial future. Now more than ever it is up to the nation to offer easier ways for the American family to start saving. The government is continuously working on finding more efficient ways for small businesses to …

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Fiduciary Responsibilities – Best Practices

Companies that sponsor 401(k) plans for their employees can sometimes underestimate the responsibilities that they should perform in order to properly monitor the plan and ensure that they are not exposed to claims that they have failed their fiduciary responsibilities. Although a significant amount of the plan administration can be performed by third-party services providers …

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Auto Enrollment: Improving 401(k) Nondiscrimination Results

Has your company been having problems passing your 401(k) nondiscrimination tests? One thing you may consider as a fiduciary is discussing automatic enrollment with your Third-Party Administrator. You may be wondering if the extra costs of additional employer matching contributions plus costs of additional implementation and administration expenses are worth the trouble. However, considering the …

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Partial Plan Termination

If your company has had a significant employer-initiated reduction in workforce and sponsors a 401(k) plan, it is important to consider whether a “partial termination” of the retirement plan has occurred. When a partial termination has occurred, all participating employees who had a severance from employment during the period must be fully vested in their accrued …

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