KANSAS CITY, Mo., May 2, 2011 /PRNewswire/ -- A new briefing from Lockton Retirement Services highlights four key lessons for retirement plan sponsors from a recent U.S. Court of Appeals decision in a Kraft Foods 401(k) dispute.
Lockton ERISA Risk Management consultant Rick Unser writes that there are four timely tips for retirement plan sponsors to avoid a prolonged battle in court:
- Remember that "no decision is a decision." A retirement plan maintaining the "status quo," is a fiduciary decision.
- Remember to document your processes. The absence of documentation in this case gave the court significant concern that a prudent process was met.
- Regularly benchmark the fees for your retirement plan. Plaintiffs argued that "prudent fiduciaries" should solicit competing bids "about once every three years."
- Don't just rely on consultants. The court ruled, that while engaging outside consultants is "evidence of prudence", it is not a get out of jail free card.
Lockton provides a range of retirement plan consulting and advisory services to plan sponsors. Lockton serves more than 600 qualified and non-qualified plans accounting for more than $13 billion in assets under management.
The full briefing is available free from Lockton Retirement Services at http://www.lockton.com/Resource_/PageResource/MKT/Four%20Timely%20Lessons%20for%20Plan.pdf
More than 3,800 professionals at Lockton provide more than 15,000 clients around the world with retirement services, insurance, benefits, and risk management services, offering an uncommon level of client service. From its founding in 1966 in Kansas City, Missouri, USA, Lockton has grown to become the largest privately held insurance broker in the world and 9th largest overall. Business Insurance recognized Lockton as a "Best Place to Work in Insurance." You can learn more at www.lockton.com
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