Improving the Knowledge Base of 401k Plan Sponsors. At the conclusion of a recent TPSU Program held at University of Maryland, Adjunct Lecturer, Joe DeNoyior, discusses plan sponsor fiduciary education while interviewing one of the plan sponsor attendees.
Speaking with Tiffany Smith, Joe DeNoyior, President of Washington Financial Group, addressed the many challenges associated with educating retirement committee members. Part of their discussion centered on the general lack of knowledge among new fiduciaries who are thrust into a decision-making role for tax-qualified retirement plans. It is apparent that some plan trustees fail to have a clear vision of what the retirement plan does, what the program means and what the retirement plan should be doing for employees and employers.
Ms. Smith is an advocate for improved education for plan sponsors and plan trustees, primarily so plan fiduciaries can gain a good understanding of the big picture. She points out that education will help both the Plan Participants and the Plan Sponsor. Education may be the key to plan success at all levels.
Published long ago, during 2002, the DOL released the Advisory Council Report of the Working Group on Fiduciary Education and Training which outlines the view of the regulator on the topic of plan sponsors being educated.
The question of “What should be addressed” when trustees seek an education, is answered in a report published directly by the DOL. The document may be the best single sources for trustees and plan sponsors seeking a Fiduciary Education. learning the requirements of serving as a retirement plan trustee or plan fiduciary. It is a is a 20-page document offered by the Department of Labor. This document is a comprehensive overview of a plan sponsor’s responsibilities and offers practical tips for individuals who are serving as plan fiduciaries.