Fred Barstein, CEO & Founder, TPSU/TRAU/401kTV with Plan Sponsor, Jyotsna– HR Manager
Plan sponsors, the backbone of the retirement planning landscape, undergo a transformative journey marked by four distinct stages of competency development. Initially, many sponsors find themselves at the stage of unconscious incompetence, unaware of their lack of knowledge regarding fiduciary responsibilities and retirement plan intricacies. However, as they progress to the stage of conscious incompetence, sponsors begin to recognize the gaps in their understanding, prompting them to seek education and guidance to fulfill their fiduciary duties effectively.
With continued learning and experience, plan sponsors transition to the stage of conscious competence, where they actively acquire knowledge and apply it to navigate the complexities of retirement planning. Finally, at the pinnacle of their development, sponsors reach the stage of unconscious competence, where fiduciary responsibilities become second nature, seamlessly integrated into their strategic decision-making processes. By understanding and embracing these stages of competency development, plan sponsors can enhance their ability to steward retirement plans effectively, ultimately benefiting both themselves and their employees.
In a recent dialogue at conclusion of a TPSU program held on the campus of The University of Southern California, Fred Barstein, CEO and founder of TRAU/TPSU/401KTV, interviewed Jyotsna, a participant from a TPSU program in Alpharetta. His conversation with Jyotsna exemplifies the idea of how competency affects one’s confidence in comprehension and understanding. She highlights the challenge plan sponsors face in understanding their responsibilities, especially if they’ve inherited a plan. She emphasizes the importance of education, both for themselves and for their employees, regarding fiduciary responsibilities, advisor roles, and engaging with service providers.
Read the Full Transcript Here:
Fred Barstein:
Greetings and welcome to this edition of 401kTV. My name is Fred Barstein. I am the CEO and founder of TPSU, TRAU, and 401kTV. We just completed a TPSU program in Alpharetta, and one of our attendees is Jyotsna. Welcome, Jyotsna.
Jyotsna:
Thank you, Fred.
Fred Barstein:
Okay. If we ask you a few questions.
Jyotsna:
Glad to answer.
Fred Barstein:
One of the things you brought up today as a spokesperson for one of our peer groups is, plan sponsors don’t even know what they don’t know or what questions to ask. I thought that was a really great observation. What are some of the things that plan sponsors should be asking, or maybe that they don’t really know that you found?
Jyotsna:
I think there are a lot of people like me who inherited a plan. So even understanding what the language is, who the players are, and what does it means by fiduciary responsibility as a plan sponsor, how do I educate the employees? What am I supposed to be telling leadership? And really, that education around what am I supposed to know that I don’t know? And that’s why I’ll say these trainings have really been eye-opening in a way that allows me to say, “Okay, I know I have to know these things, and here are the resources I can go to. Here’s the advisor. This is what an advisor does. Here is a record keeper.” This is what you should be asking when you’re talking with record keepers or advisors. And also, really just… What is the best thing we can do for our employees?
Fred Barstein:
Right. Because that’s the ultimate goal-
Jyotsna:
Absolutely.
Fred Barstein:
… to do that. So, great. One or two things you picked up today on this program. I know you’ve been here before.
Jyotsna:
Yeah. No, today was really impactful because I brought a team from my group, and we could think about how do we get more involvement firms our employees. So that was very helpful to hear what the tips from other people.
Fred Barstein:
Engagement.
Jyotsna:
Engagement, yeah. And the other thing is, this doesn’t end with an enrollment period that we have to pay attention at least quarterly, if not more.
Fred Barstein:
Great. Well, thanks for your time today.
Jyotsna:
Thank you.
Fred Barstein:
And thank you for watching 401kTV. Please stay tuned.
