What is the best way to reduce the number of vendors servicing our plan?

The best way to reduce the number of vendors servicing your plan is to conduct a thorough review of the current vendors and their services. Identify any redundancies and consider consolidating services with a single vendor who can meet all your needs efficiently.

How often should my organization assess our plan’s service providers and put out a formal request for proposal (RFP)?

Your organization should assess the plan’s service providers via an RFP every three to five years.

What is the best way to check if my organization’s plan documents are up to date and compliant with current IRS and DOL regulations?

The best way to check if your organization’s plan documents are up to date and compliant is to conduct regular reviews with the help of a qualified retirement plan advisor or legal counsel. They can ensure that your documents meet all current IRS and DOL regulations.

My organization recently experienced some operational changes. How can I ensure our plan is still compliant?

To ensure your plan is compliant after operational changes, conduct a comprehensive review of the plan documents and operations. Consult with a retirement plan advisor or legal counsel to identify any necessary updates or adjustments.

How should my organization manage the diverse needs of our employees effectively?

To manage the diverse needs of your employees effectively, consider offering a variety of investment options and educational resources. Tailor communications and education programs to address different employee demographics and preferences.

What is the best way to educate employees about their retirement plan and investment options? Are there services available that offer professional advice and guidance to help employees make informed decisions?

The best way to educate employees about their retirement plan and investment options is to provide regular workshops, webinars and one-on-one counseling sessions. Many service providers offer professional advice and guidance to help employees make informed decisions.

I am not satisfied with the investment options and their performance within the plan, what should I do?

If you are not satisfied with the investment options and their performance, consider a review of the plan’s investment lineup. Work with your retirement plan advisor to identify better-performing options and make necessary adjustments.

How often should my organization monitor our plan’s performance?

Your organization should monitor the plan’s performance at least quarterly. Regular monitoring helps ensure that the plan is meeting its objectives and allows for timely adjustments if needed.

My administrative staff is spending too much time managing our retirement plan. How can I easily streamline plan operations to reduce the total time spent managing the plan?

To streamline plan operations and reduce the time spent managing the plan, consider outsourcing administrative tasks to a third-party administrator. This can help free up your staff’s time and ensure efficient plan management.

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Article

FAQs for effective retirement plan governance

March 21, 2025 · Authored by David DuBrava and Matt Payne

Whether you're managing a 403(b) or 401(k) plan, our FAQs provide essential insights to help you navigate the complexities of plan management. From reducing vendor numbers to ensuring compliance and educating employees about investment options, we've got you covered. Dive in to find answers to your most pressing questions and ensure your retirement plan is optimized for success.

How often should my organization review its 403(b) or 401(k) plan governance structure?

Your organization should review its 403(b) or 401(k) retirement plan governance structure at least annually. Regular reviews help ensure that the plan remains compliant with current regulations and continues to mee the needs of your employees.

Is it important to have a retirement plan committee in place?

Yes, having a retirement plan committee is crucial. A committee provides oversight and ensure that the plan is managed in the best interests of the participants. It also helps in making informed decisions regarding plan investments and administration.

What is the importance of an Investment Policy Statement (IPS)?

An IPS is important because it provides a clear framework for making investment decisions. It outlines the plan’s investment objectives, risk tolerance and guidelines for selecting and monitoring investments. This helps in maintaining consistency and accountability in the investment process.

How often should our organization review the plan’s administrative and investment costs, as well as its performance?

Your organization should evaluate the plan’s administrative and investment costs, along with its performance, at least once a year. Regular reviews help identify avoidable expenses and ensure that fees remain competitive and appropriate.

David DuBrava

Senior Advisor, Wealth

Matt Payne