Plan sponsors have to manage many moving parts in their retirement plans. Arranging plan options, managing compliance, increasing participation, educating participants and most importantly, adhering to fiduciary obligations can feel like an overwhelming responsibility. Due to the large amount of work in starting and maintaining their retirement plan, sponsors often overlook certain aspects that may expose them to potential liability. Additionally, some plan sponsors are unaware of the ongoing fiduciary duties which can result in misconceptions about the plan and its participants. These misconceptions can be costly, and sponsors may find themselves in trouble with the IRS or the Department of Labor.
Here are five common misconceptions plan sponsors have – and why they are likely wrong.
