*Take our initial assessment to determine whether you are doing enough to monitor your 401(k) plan, and a Boulay advisor will contact you shortly.
As the 401(k) landscape continues to evolve, plan sponsors have more questions than ever. The recent Supreme Court decision in the Tibble v. Edison case seems to emphasize the “duty to monitor” investments requirement for 401(k) and other company sponsored retirement plans.
The initial suit was filed in 2007, when petitioners argued that Edison International had violated its fiduciary duties with respect to three mutual funds added to the plan in 1999 and three other mutual funds added to the plan in 2002. In short, the investments in question were offered to the plan participants as higher-priced retail share classes when lower priced institutional share classes could easily have been obtained.1
The top federal court in Tibble held there is an ongoing fiduciary duty to monitor investments in a 401(k) plan to ensure that the investments remain prudent, which applies even if there is no intervening change in circumstances.1
As a Plan Sponsor and Trustee, there are a few things to consider as part of your company sponsored retirement plan:
- Review your Investment Policy Statement to ensure it provides clear guidelines on the review of investment options
- Make sure the plan is operated in a way that matches written documentation
- Perform a comprehensive review of all investments
- Engage a co-fiduciary plan advisor to help monitor and review investments and lead your investment committee
If you have questions regarding your fiduciary responsibilities as they relate to your retirement plan, please contact:
Joe Bloodgood, CFP®, AIF®
Boulay Financial Advisors, LLC
Investment Advisory Services offered through Boulay Financial Advisors, LLC a SEC Registered Investment Advisor. Certain Third Party Money Management offered through ValMark Advisers, Inc. a SEC Registered Investment Advisor. Securities offered through ValMark Securities, Inc. Member FINRA, SIPC 130 Springside Drive, Suite 300 Akron Ohio 44333-2431* 1-800-765-5201 Boulay PLLP and Boulay Financial Advisors, LLC are separate entities from ValMark Securities, Inc. and ValMark Advisers, Inc.