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Retirement Plan Services
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2 min read
What If: Due Diligence Feels Overwhelming?
Plan sponsors know they must perform due diligence on their providers, but what does that mean? How often? How much? Which questions do we need to ask?
Due diligence is defined by the thorough investigation and evaluation of your retirement plan providers, investment advisors, and other partners. As a fiduciary, ERISA mandates that you perform ongoing due diligence solely for the benefit of the plan participants and their beneficiaries. ERISA imposes personal liability, meaning you are personally accountable if the plan fails to comply with its regulations.
Let’s take a look at a worst-case scenario…
What If: You Get Sued?
Litigation in retirement plans is on the rise, and many case studies in existing litigation can help plan sponsors know the things to look out for.
Imagine driving over a deep ravine on a narrow bridge with guardrails. As a driver, you likely have never hit a guardrail, but the thought of them disappearing is terrifying. In life, we desire a safety net to catch us if we veer off course.
We are using this as an example of your fiduciary responsibilities. The ravine represents your due diligence, the bridge represents your procedures, and the guardrails are the partners you’ve enlisted to guide you, not only when things are running smoothly, but to catch and assist you if needed.
If you are conducting the due diligence that is required of you by law, your guardrails will catch you should you fall.
The Due Diligence Questionnaire: An Additional Guardrail
Due diligence can seem overwhelming, especially when you have a variety of other responsibilities to fill. Fortunately, you don’t have to tackle these responsibilities blindly.
We offer a complete due diligence questionnaire that enables plan sponsors to assess existing and potential advisors quickly and confidently.
It doesn’t have our name on it and is meant to serve as an additional guardrail to help plan sponsors answer meaningful and to-the-point questions with easy “Yes” or “No” answers. All qualified advisor partners should be able to answer YES to all five of these critical questions to ensure your plan is conducting the fiduciary responsibilities required of you.
See where you stand - download our quick due diligence evaluation and start building a stronger compliance file today.
At SWBC Retirement Plan Services, our experts are here to provide your retirement plan with expert guidance. Want to learn how we can help you? Fill out our contact form at the bottom of this page, and a representative will reach out!
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Retirement Plan ServicesSara Matlock
Sara Matlock is Senior Vice President of SWBC Retirement Plan Services and also serves as a voting member of SWBC’s Investment Committee. She has more than 27 years of experience in the financial services industry. Prior to joining SWBC, Sara was Vice President of Investor Relations for Jones Villalta Asset Management, where she provided retirement planning and investment management services to high-net-worth individuals, families, and companies. Before that, Sara spent eight years at National Financial Partners (NFP) as Vice President of Members’ Services, Marketing & Communications. She worked with firms specializing in high-net-worth clients, benefits, retirement planning, and investment management. Sara received her Bachelor of Arts in Economics, with a concentration in Engineering and Mathematics, from the University of Texas at Austin. She earned the designation Chartered Life Underwriter (CLU) from The American College and her Series 7 and 65 licenses.
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