404c Compliance
What Is 404c And Why Do You Need To Comply?
As an employer, sponsoring a retirement plan (i.e., 401K) can be a daunting task. You want what is best for your company and your employees. Unwittingly, however, by putting a plan in place you bring with it a great deal of responsibility and potentially…LIABILITY.
Section 404c of ERISA (Employee Retirement Income Security Act of 1974) provides employers and fiduciaries specific defenses or protection from liability, if the plan satisfies the conditions set forth. If the requirements of the 404 C are met (and if the investment alternatives are appropriate for the workforce and are prudently selected and monitored), a plan fiduciary will not be liable for losses suffered by plan participants as a result of their investment choices.
How We Can Help You Comply
There are many steps that must be satisfied in order to be in compliance.
- We can help compliance by:
- Conducting employee education
- Reviewing retirement plan review
- Reviewing IPS (Investment Plan Statement)
- Developing IPS
- Helping to establish a plan review committee
- Conducting plan review meetings
- Analyzing investment performance against key benchmarks
- Monitoring and reviewing investments and investment managers
- Recommending necessary changes to investment and or investment managers
- Analyzing and monitor plan expenses
Remember, the better your employees are at managing their finances, the more productive they are on the job. Also, education encourages participation!
