You want to offer a quality retirement plan for your employees that is compliant with changing government standards and protected against legal challenges. Here’s what you should know:
A Challenging Regulatory and Legal Environment
It’s a new world for employers who sponsor 401(k) and other defined contribution retirement plans, and the news is challenging. Increased litigation, along with new US Department of Labor regulations and stepped-up retirement plan scrutiny has created an environment of uncertainty and heightened liability. Employer plan sponsors are legally responsible for acting as prudent experts. They can be held personally liable for failing to sufficiently diversify or control the fees associated with their plan’s investment options.
Not All Plans Are Equal
The truth is, many employers are unaware of whether the investments in their 401(k) plan are sufficiently diversified, and they’re often uninformed about their plan’s investment fees. Like you, they’re focused on running their business, not on ensuring their plans are prudently managed as defined by US Department of Labor regulations under the Employee Retirement Income Security Act of 1974 or ERISA. While well-intended, employer plan sponsors understandably lack investment expertise. This creates personal liability for them as they struggle to oversee their plan’s components in compliance with strict and ever-changing regulatory standards.
The Alliant Solution
Fortunately, there are solutions that enable you, the employer, to act with confidence as you offer your employees a 401(k) plan. Alliant Wealth Advisors provides your plan with professionally managed investment models and can act as your plan’s ERISA Section 3(38) investment fiduciary, significantly limiting your liability. Our comprehensive approach also offers your employees information to help them in making their investment selections, and we guide you on other compliance issues. Finally, we coordinate the team of service providers that provides the back-end support for your plan. We invite you to learn more about Alliant’s 401(k) Solution.