Insurance consulting and brokerage powerhouse Lockton is helping to quell some of the confusion surrounding the recent DOL fiduciary rule by releasing its “Quarterly Fiduciary Checklist” to aid 401(k) plan advisors and sponsors in keeping abreast of their fiduciary responsibility.
According to the company, the checklist “sets an agenda for quarterly retirement committee meetings and helps document plan topics that should be addressed at least annually.”
Each quarter’s focus subject is intended to be a primary topic discussion for the committee, though other matters will also be discussed. The checklist may be edited to meet the needs of individual clients.
Examples of the fiduciary responsibility topics to be discussed each quarter include:
First Quarter: Plan Governance – the committee charter, committee meeting minutes, the plan document, board resolutions, fidelity bonds and more.
Second Quarter: Fees and Expenses – service provider agreements, service provider fee disclosures, service provider fee change notice, participant fee disclosure, participant comparative chart, quarterly benefit statements, etc.
Third Quarter: Investments – the investment policy statement (IPS), the plan document and summary plan description.
Fourth Quarter: Plan Administration – Form 5500 auditor’s opinion, plan document and recordkeeper’s service agreement.
Lockton claims that 6,000 professionals provide 48,000 clients around the world with risk management, insurance, employee benefits consulting, and retirement services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has “attracted entrepreneurial professionals who have driven its growth to become the largest privately held, independent insurance broker in the world and 10th largest overall.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
