Fiduciary Responsibility

What is a Fiduciary?• Has control of retirement funds and/or investment

options in a 401(k) Plan;• Gives investment advice; or• Has responsibility over administration of the

retirement plan.• ACCE Benefit Trust is the Named Fiduciary in the

401(k) plan documents. • You are also a fiduciary as Participating

Employer!

Fiduciary Duties• Operate the plan in the sole interest of the

participants.• Act with care and diligence.• Diversify plan investments to reduce risk and

satisfy 404(c) requirements.• Operate the plan in compliance with federal

regulations.• Submit contributions as per DOL guidelines.

How is Benefit Trust a Fiduciary?• Selects and monitors the plan investment options

on a quarterly basis; utilizes an outside, unbiased investment consultant.

• Reviews regulatory updates to ensure plan is maintaining compliance with federal legislation; utilizes top ERISA firm in the country as plan council.

• Maintains Fiduciary Liability Insurance policy for the selection and ongoing monitoring of investments.

• Oversees annual independent audit.

What is your role as Fiduciary?• Educate your participants about the benefits of

the plan.• Do not engage in any investment related

discussions! This could be construed as providing financial advice.

• Submit contributions as per DOL guidelines.• Administer the plan according to the procedures

outlined in the ACCE Plan Administration Manual.• Retain records as required by law.

Ways to Limit Fiduciary Liability• Offer diverse investment options and let

participants control how their money is invested √

• Comply with 404(c) √ • Provide proper annual notices to participants (i.e.

QDIA, SMM and Safe Harbor) √• Appoint investment manager √• Fidelity bond √

What is a Bond? Do we Need One?• All employers must have a Fidelity Bond that

covers at least 10% of plan assets or $500,000 (whichever is less.)

• Can be referred to as a “fidelity insurance policy” or “ERISA bond”

• Protects the employer against the loss of plan assets due to fraud or dishonesty.

• Fiduciary liability insurance is optional, but ACCE recommends for all employers.

• Refer to the ACCE Plan Administrator Manual for additional information.

Questions?• The ACCE Benefits Team

• Shonda Norris -10 years experience• Susan Aura - 5 years experience• Colleen Logan - 11 years experience• Stacey Breslin - 16 years experience

• Available Monday through Friday from 8:30 am – 5:00 pm ET