The video titled “Jerry Schlichter Video Interview: Plan Sponsors, Advisors and their Fiduciary Duty” discusses the perspectives and ongoing litigation efforts related to fiduciary responsibilities in 401(k) plans.
Key Points:
Changes in Practices: There has been a shift away from revenue sharing as a means of paying for recordkeeping, with more employers now understanding the need to monitor fees to ensure they are not excessive.
Support from Key Figures: Jerry Schlichter mentions receiving support from notable figures like John Bogle and organizations such as AARP. AARP even co-counseled in cases, highlighting the importance of ongoing monitoring in 401(k) plans.
Litigation and Awareness: Schlichter notes that there has been a significant increase in awareness among plan sponsors about their fiduciary duties, particularly regarding fees and recordkeeping. He contrasts the current situation with ten years ago, stating that more sponsors are now doing things correctly.
Fiduciary Duty: He emphasizes the importance of plan sponsors and advisors taking their fiduciary responsibilities seriously, avoiding complacency, and ensuring that they act solely for the benefit of plan participants.