Duke Financial

Why Employers Should Embrace Fiduciary Training for 401(k) Plans

As an employer offering a 401(k) retirement plan, you're not just providing a valuable benefit to your employees – you're also taking on significant responsibilities. One of the most crucial steps you can take to fulfill these responsibilities is participating in fiduciary training. Let's explore why this training is not only beneficial but also mandated by the Department of Labor (DOL).

Meeting DOL Requirements

First and foremost, it's essential to understand that fiduciary training is not optional. The Department of Labor requires employers who sponsor 401(k) plans to undergo this training. This requirement underscores the importance the DOL places on proper plan management and the protection of participants' interests.

Ensuring Proper Plan Operation

Fiduciary training offers a valuable opportunity to learn and verify that you're operating your 401(k) plan correctly. Many employers are unaware of the full scope of their fiduciary responsibilities, which can lead to unintentional violations. Through training, you can:

1. Understand your fiduciary duties
2. Learn best practices for plan administration
3. Identify and mitigate potential compliance risks
4. Stay updated on changing regulations

Protecting Your Business

By participating in fiduciary training, you're not just fulfilling a requirement – you're also protecting your business. Proper training can help you avoid costly mistakes that could lead to:

• DOL audits
• Participant lawsuits
• Financial penalties
• Reputational damage

Enhancing Plan Performance

Well-trained fiduciaries are better equipped to make informed decisions about plan investments, fees, and services. This knowledge can lead to:

• Improved investment options for participants
• Lower plan costs
• Enhanced plan features and services

Building Employee Trust

When employees know their employer is well-trained in managing their retirement plan, it can boost their confidence in the plan and in the company as a whole. This can lead to:

• Increased plan participation
• Higher contribution rates
• Improved employee satisfaction and retention

Staying Ahead of the Curve

The retirement plan landscape is constantly evolving. Regular fiduciary training helps you stay informed about:

• New regulatory requirements
• Emerging best practices
• Technological advancements in plan administration

Conclusion

Fiduciary training for your 401(k) plan is more than just a box to check – it's a valuable opportunity to ensure you're providing the best possible retirement benefit to your employees while protecting your business. By embracing this DOL requirement, you're demonstrating your commitment to your employees' financial future and your own fiduciary excellence.

Remember, the goal isn't just compliance – it's about creating a retirement plan that truly serves your employees and your organization. Invest in fiduciary training today and reap the benefits of a well-managed 401(k) plan for years to come.

Oregon Techworks partners with Duke Financial Partners to help craft retirement plans and executive benefit plans for our member organizations.  Members are invited to participant in their annual fiduciary training session on Tuesday, October 22^nd at Noon Eastern / 9am Pacific time.  Alison Cohen of Ferenczy Benefits Law Center will be reviewing the 10 most important fiduciary considerations for your 401K plan.  

Alison is one of the country’s most prominent ERISA attorneys and has been practicing since 1996.  She is a sought after speaker on topics related to ERISA and is a co-author of The Plan Correction eSource and has also assumed co-authorship of ERISA : A Comprehensive Guide.  If you have interest in attending this virtual session, please contact Michael Fennessy at Duke Financial Partners (mfennessy@dukefinancialpartners.com) for sign-up information.  

‍Securities offered through Lion Street Financial LLC (LSF), member FINRA & SPIC.
Investment Advisory Services offered through Lion Street Advisors, LLC.  LSF is not affiliated with Duke Financial Partners