Three New Year's Resolutions for Plan Sponsors

It's time again to make resolutions for the New Year. If you're like me, some of these resolutions you'll keep and some....well, may not be so easy. In my view, simplicity is the key to successful resolution keeping, so I've considered three (yes, only three!) to consider.

Create a Fiduciary File

Make sure you have one - and that it is up to date. This file should contain all plan documents and amendments. Thanks to the world of emails and the Portable Document Format (pdf), records of all plan documents and amendments requires a lot less paper and are much easier to store. Client portals like Innovest's InnoVault, allow plan sponsors to upload documents to a secure server so they are available when needed. A fiduciary file not only maintains copies of plan documents, but it also houses documentation of the decisions made by the board and a written summary of the processes used to reach those decisions. Keeping documents related to all fiduciary decisions, such as hiring service providers, meeting minutes, changing and reviewing investment options, and other decisions, ensures that you're creating a paper trail for future board members and protecting yourself in case of an audit.

Review Plan Expenses

Plan sponsors have a fiduciary responsibility to ensure that the plan's fees and expenses are reasonable. Plan sponsors need to review the expenses charged to their plan and determine whether they are reasonable for the services provided. Plan sponsors should have received fee disclosures from their plan provider. Reviewing the disclosures and benchmarking those fees to those charged in similarly sized plans are the most effective ways to ensure that plan expenses are reasonable. Who knows? This exercise might also provide you the opportunity to renegotiate lower fees, and the savings to the plan could be substantial. That would be a great way to begin 2018!

Review Plan Providers

Plan Sponsors need to resolve to review the work of their providers to make sure they are doing the work promised. Reviewing the services standards, education offerings and other promised services ensures that your plan is receiving the services for which it has paid. Plan sponsors should review their plan providers by either doing the work themselves or by hiring a qualified consultant to evaluate the offerings in comparison to other providers in the marketplace. Vendors frequently introduce new tools and technologies, which provides an opportunity to learn about new tools and services that may add value to your participants.


Innovest's Employee Spotlight

For the fourth consecutive year, Innovest is sponsoring four students from Arrupe Jesuit High School. Students intern at Innovest through the school’s Corporate Work Study Program. The majority of students participating are from families below the poverty line and will be the first in their families to graduate from high school and hopefully college. Arrupe students attend classes four days per week and intern one day at a company, such as Innovest.

Leslie Astudillo-Rangel – Senior

Leslie is interning for the first time at Innovest. She organizes her schedule to work on homework and scholarships. She would like to attend Loyola University of Chicago. Life in college for Leslie will be busy as she hopes to double major in psychology and sociology, as well as earn a minor in journalism.

Anahi Sanchez – Junior

Anahi returns to Innovest for her third year. She keeps busy with school work and her work at Innovest. Her favorite subject is English. Her goal is to attend the University of Colorado at Boulder. She is still deciding on her course of study, but is interested in the medical field.

Fernando Rodriguez – Sophomore

This is Fernando’s second year at Innovest. He is well-known for his snappy bowties that he wears each week. Fernando has a great attitude and happily takes on any task assigned to him, even the tedious ones. Fernando ultimately wants to attend the University of Colorado at Boulder and become a doctor or a nurse.

Erika Esmeralda Guardado – Freshman

Erika is our new freshman worker. She demonstrates an ability to come out of her comfort zone by standing up for what is right, doing public speaking, and joining sports. Erika plans to attend college in Colorado and has set her eyes on the University of Colorado Boulder, Regis University, or University of Denver.

Fraud Scheme Targeting 401(k) Accounts Uncovered

A scheme to  fraudulently transfer funds from plan participant accounts by unauthorized persons has been uncovered by the Denver Division of the FBI. "According to the suit, the FBI’s Denver Division was contacted by in November 2016 by Great-West Financial’s VP of Internal Audit regarding allegations of fraudulent transfers from clients’ 401(k) accounts from JP Morgan. At that time, Great-West Financial had 20 participants affected and a loss of at least $1 million with a potential loss in excess of $2 million, according to the suit."   Click here to read more.

Source: ASPPA Net