Optimizing Plan Performance and Reducing Fiduciary Risk

Organizations often have a blind spot when making decisions regarding employee benefits. The risk of this shortfall is compounded by common misconceptions regarding the true nature and scope of the fiduciary duties imposed by ERISA and the associated liability retained by plan sponsors and trustees, even when they rely on outside experts. As a result, most plans are paying 20%-60% higher fees than are necessary for the services being delivered, and employers and trustees (aka “Plan Fiduciaries”) have unknowing retained financial liability for fiduciary obligations they mistakenly think they have delegated to their 401(k) provider.
Brian will provide the insight, technical understanding and tools that necessary to educate Plan Fiduciaries and help protect them and their organization from the liability and risk presented by their ERISA plan.
The presentation will provide a high level view of the fiduciary responsibilities and specific examples of the technical and real world liability and risk Plan Fiduciaries face. A more detailed examination of the three most common fiduciary blind spots will be provided along with recommended actions that can be taken to mitigate their risk.
Attendees will learn about the difference between the rules-based Suitability Standard of Care followed by roughly 90% of the financial industry and the ethic-based Fiduciary Standard of Care adhered to by the other 10%. They will learn how these two different standards of care result in two very different approaches to managing fiduciary risk in retirement plans and the practical
Mr Lakkides will then explore the new plan and participant level fee disclosure regulations and how the information and insight regarding fees can be leveraged to (1) save money, (2) properly manage liability, and (3) increase the value of account values at retirement by:
•       minimizing wasted man hours,
•       streamlining operations and improving compliance
•       increasing transparency, accountability, and quality control, and
•       introducing fiduciary services for plan participants and decision makers.
The presentation will concluded with a real world examination of the financial impact and benefits that can be captured for plan participants by identifying excessive plan fees/expenses and redirecting their expenditure.

This presentation will provide critical information and insight regarding fiduciary responsibility and liability. It should be attended by anyone within the organization regardless of title or job description who:

• Makes or influences decisions regarding plan management, administration or disposition of assets
• Hires, fires or decides to retain service providers
• Appoints trustees
• Serves as a member of the Trustee Committee
• Provides investment advice to the plan or its participants for a fee or other direct/indirect compensation

True nature and scope of fiduciary responsibility and liability How retirement plan fees are calculated and imposed, and the fiduciary advantage of a flat-dollar fee structure versus the more common percentage of assets fee structure How to utilize ERISA to identify and retain the service providers who can and will provide trustees with affirmative indemnification

www.FiduciaryFirewall.com Click here www.FiduciaryPlanGovernance.com Click here www.ERISAfeedisclosure.com Click here www.fi360.com Journal of Pension Benefits

		Brian Lakkides, AIF® Fiduciary Firewall Consulting, Inc (a Fiduciary Plan Governance, LLC affiliate) View Profile