Fiduciary Essentials for Defined Contribution Plan Stewards
Session 1: The Role of a Retirement Plan Steward
24 Topics
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Learning Objectives
What Does “Fiduciary” Mean?
The Core Fiduciary Duties
Universe of Plan Fiduciaries
Stewards
Investment Advisors
Investment Managers
Attaining Fiduciary Status
Fiduciary Roles in a 401(k) Plan
Roles and Responsibilities
Fiduciary Obligations – Why You Should Care
Laws and Regulators
ERISA
Pension Protection Act
DOL Fiduciary Obligations
DOL Assessment of Plan Fiduciaries
Fiduciary Obligations – It’s On You to Understand Them
Global Fiduciary Precepts
Fiduciary Excellence
Session 2: Eight Fiduciary Precepts Every Steward Must Know
31 Topics
Learning Objectives
Stewards – Three Functional Areas of Responsibility
Global Fiduciary Precepts for Prudent Investment Oversight
Precept # 1: Know Standards, Laws, and Trust Provisions
ERISA Plan Documents
Role of Governing Documents
Precept # 2: Diversify Assets
Goal of Diversification
Defining the Investment Profile
The Problem with Time Horizon in a DC Plan
Participant “User Error”
A Sequence for Adding Asset Classes
Precept #3: Prepare Investment Policy Statement (IPS)
The Role of the IPS
IPS Outline
Benefits of an IPS
Precept #4: Prudently select fiduciary and non-fiduciary service providers and document due diligence
Choosing Investment Managers: Suggested Minimum Criteria
Service Provider Due Diligence
Precept #5: Control and account for investment expenses and other costs
Session 3: Applying Fiduciary Best Practices
29 Topics
Learning Objectives
The Fiduciary Quality Management System (FQMS)
Step 1 – Organize
Fiduciary File
Service Provider Agreements
Conflicts of Interests / Prohibited Transactions
Theft and Embezzlement Safeguards
Step 2 – Formalize
The Hierarchy of Decisions
Risk & Return
Asset Allocation Lessons Learned
The Investment Policy Statement
Step 3 – Implement
Due Diligence for the Custodian
Due Diligence for Security Selection
Due Diligence Philosophy
About Safe Harbors
Summary of ERISA Related Safe Harbors
405(c) or General Safe Harbor Provisions
404(c) Safe Harbor Provisions
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ERISA Plan Documents
Fiduciary Essentials for Defined Contribution Plan Stewards
Session 2: Eight Fiduciary Precepts Every Steward Must Know
ERISA Plan Documents
Summary plan document (SPD)
Summary of material modifications (SMM)
Investment committee policies
Investment policy statement (IPS)
Plan trust document
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