Roman Leshak, Jr., director, Audit & Accounting and Employee Benefit Plans Specialty Area Leader, wrote an article on satisfying fiduciary responsibilities for the Summer 2016 issue of the PICPA’s Pennsylvania CPA Journal.
Retirement plan fiduciaries are not exclusive to one specific role or title in an organization. They can include the owner, CFO, retirement committee, or human resource professionals. In fact, plan administrators may not even know they qualify as a plan fiduciary, and may believe they are protected if they hire service providers to be third-party administrators (TPA). That is not the case. While plan administrators may delegate responsibility, they cannot abdicate total fiduciary responsibility for their plan, and must act with the same care, skill, and diligence under prevailing circumstances that a prudent person acting in a similar capacity would exercise. Here are a few areas that every plan fiduciary should address to fulfill his or her fiduciary responsibilities.