Offering an employee retirement savings plan carries with it a significant amount of responsibility. Under the Employee Retirement Income Security Act of 1974 (ERISA), it also exposes you to some degree of personal liability. ERISA protects a plan from the mismanagement and misuse of its assets by establishing a fiduciary relationship between the plan and anyone who:
There are several ways for you, as the plan sponsor, to fill the role of trustee for a qualified retirement plan. Each comes with its own degree of fiduciary liability.
Given the different levels of fiduciary duty and the increasing degrees of liability that accompany them, it is vital for you to define the exact role to be assumed by the trustee. Trust Point proudly assumes the role of Discretionary Trustee Without Sign-off. This means that Trust Point will provide all typical trustee services and will retain shared responsibility with you for ongoing due diligence over the investments held by your 401(k) plan.
As your Discretionary Trustee Without Sign-off, we have a vested interest in your plan. As a result, we maintain a level of control that provides seamless support.