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Spooked by the Specter of Fiduciary Liability?

The mere whisper of the word "fiduciary" is enough to send shivers down the spines of many retirement plan sponsors, and not without good reason.  Many sponsors wonder how they can avoid harsh consequences for not understanding and fulfilling their fiduciary responsibilities to their retirement plans.

Fortunately, pension law encourages sponsors to seek professional help, allowing sponsors to delegate certain fiduciary responsibilities.  It is important to be cautious whom you hire. There are two types of institutional trustees, directed and/or discretionary.  Typically, directed trustees often refuse fiduciary responsibility and do not advise on plan assets or investment decisions, leaving the sponsor on its own.

The Department of Labor (DOL) holds a discretionary trustee to a much higher standard.  The discretionary trustee assumes the responsibility and liability for selecting, monitoring, and, as needed, replacing plan investments, and they are required to make un-conflicted decisions regarding the revenue received from a fund company.  In fact, they are not allowed to keep revenue sharing payments and must pass these payments back to the plan as a fee offset.

Are you shadowed by the specter of fiduciary liability and less than optimal retirement plan outcomes?  If so, consider the specialized services and benefits provided by Dennis Tidmore, Retirement Plan Specialists.