Despite lacking any regulatory authority to do so, the Department of Labor has made an issue of fiduciary training over the last few years. The reason, according to Bryan Cave's Sheldon H. Smith: The DOL views fiduciary training as a critical element of good governance, and looks for evidence of a fiduciary training program upon audit.
Speaking at ASPPA's 2014 Annual Conference Oct. 27, Smith noted that more employers are following the DOL's lead and providing formal fiduciary training to their plan committee members. All members should have a full understanding of what it means to be an ERISA fiduciary -- as well as the exposure to liability associated with their fiduciary status, Smith asserted.
Smith outlined a possible agenda for each of the four training sessions:
Module 1
- Identify committee members' status as a fiduciary and the various types of fiduciary functions.
- Distinguish fiduciary functions from settlor functions.
- Review the primary statutory duties of a fiduciary.
- prodedural prudence;
- delegation;
- preparation for and execution of committee meetings;
- attorney-client privilege;
- conflicts of interest; and
- the pertinent requirement of ERISA and the Code.
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- Committee charter and membership.
- EBSA and IRS examiniations and audits.
- Internal controls.
- Outsourcing administrative services.
- Document review.
- Procedures for handling uncashed checks.
- TDFs and related duties.
- Re-enrollment procedures for auto-enrollment arrangements.
- fees and risks;
- ERISA investment theory;
- behavioral finance;
- revenue sharing;
- ERISA budget accounts;
- brokerage windows; and
- watch list.
- personal and co-fiduciary liability;
- bonds, indemnification and insurance;
- good governance procedures and documentation;
- good advisors; and
- safe harbors.
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