Retirement plans are more complex and regulated than ever before.

Retirement plan sponsors and their companies are under increased government scrutiny to act in the best interests of plan participants.

Increasing media reports spotlight incidents in which plan sponsors and employees have been steered into investing in inappropriate mutual funds that provide “revenue sharing”—typically undisclosed payments—to plan providers and their brokers.

Regulators and legislators have taken notice. The Employee Retirement Income Security Act (ERISA), and the Sarbanes-Oxley Act are prompting increasing federal agency audits of retirement plan committees’ fiduciary compliance efforts.

Companies that do not provide proper safeguards and oversight may be found liable for neglecting their fiduciary responsibilities. Unfortunately, many firms do not realize their responsibilities—or they unwittingly delegate the responsibility to the plan provider who may have a conflict of interest—such as firms that recommend their own funds for the company plan.

For more information, please contact:

Dana B. Croswhite
dcroswhite@kingadvisors.com
713.203.3053