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Retirement Committee Education Important for Fiduciaries

Retirement Committee Education Important for Fiduciaries

Retirement Committee Education is becoming more important than ever. This is due to several factors.  One being, Fiduciary Lawsuits have become more prevalent over recent years.  It is no longer safe to proceed with a team of plan fiduciaries who lack strong Retirement Committee Education. Having a strong and knowledgeable retirement committee education program goes a long way towards keeping the retirement plan on the right track. At the conclusion of a recent The Plan Sponsor University (TPSU) program at San Jose State University, in San Jose, California, Fred Barstein, TPSU Founder and CEO, Fred Barstein spoke with one of the program attendees, Mr. Greg Boro, Director of Business Operations for a 450-person organization. In his role as Director of Business Operations, Mr. Boro oversees the Human Resources Department. In this 401kTV video, Mr. Boro discusses the benefits that accrue to the retirement plan participants when a retirement plan committee employs a practice of maintaining regular and ongoing retirement committee education.

Full Transcript Here

Fred Barstein:
Fred Barstein with 401kTV at San Jose State University where we just completed a TPSU program. I’m here with Greg, who has a phone call now in four minutes.

Greg Boro:
Four minutes.

Fred Barstein:
Four minutes. So we’ll get him plenty of time. So Greg, okay if we ask you a few questions?

Greg Boro:
Absolutely.

Fred Barstein:
Okay. So before we do, a little bit about how many employees you have in your role at the company.

Greg Boro:
I’m the director of business operations, which includes HR, at our company. We have a little over 450 employees now.

Fred Barstein:
Today you talked about getting more fiduciary education for your committee. Why is that important to you?

Greg Boro:
Today put things in perspective for me, Fred, because I’ve carried through on my fiduciary responsibilities, but the rest of my committee has depended on me. I don’t think I need to be alone in that responsibility, and I want them to bear a little bit of it. Not the pressure. I don’t feel the pressure as long as we’re motivated in doing things right by the plan and by the employees. But there are things they should know and think about, especially as we enter our quarterly meetings.

Fred Barstein:
So you’re doing too good a job. You’re making everybody else coast. Why do you want to do that? What do you think the benefit would be?

Greg Boro:
We are always looking to make sure we’re doing right. I think the benefit is to cross all the t’s and dot all the i’s. My phone is ringing.

Fred Barstein:
Right.

Greg Boro:
We need to pause it for a second. Seriously, this is that call.

Greg Boro:
Hey, it’s Greg.

Fred Barstein:
So Greg is back from his phone call, with his 401K record keeper. That’s fine. We have lots of jobs to do. So the final question I had is what do you think the benefit is of having more of the committees educated and involved in the process.

Greg Boro:
More ideas coming from knowledge. I know enough to know that I don’t know a lot. And the more people that can start thinking about things in a different or more creative way on behalf of the plan, on behalf of the participants, how can we not benefit from that?

Fred Barstein:
That’s great. So the final question. A couple of things you may want to try to take back when you go back to the office?

Greg Boro:
Well, ironically, Mark [Lawton 00:02:29] who’s our advisor, I think we need to bring in more for employee engagement activities, both group discussions. We’ve discussed making them mandatory as well as making them available for some individual meetings if people want to pursue that. That’s one thing that we want to do.

Greg Boro:
The other is just to make sure I keep pushing the envelope on my co-conspirators, as it were, on education, improving education and making sure our plan is designed to maximize the benefit to the employees.

Fred Barstein:
Very good. Well, thanks for your time today.

Greg Boro:
My pleasure.

Fred Barstein:
And thank you for watching 401kTV. Please say tuned.

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