Where will the next generation of plan sponsor fiduciaries be developed? Is it sufficient to have new fiduciaries spawned from the ranks on an “as-needed” basis? Why is the role of plan sponsor fiduciary perceived as something of an inconvenience? Why is it treated as a hardship by some?
Most retirement plan oversight duties fall to a small core of employees who accept fiduciary responsibility for the company retirement plan but are often completely lacking any formalized training or education, notes Staff Chalk in his “Inside the Plan Sponsor’s Mind” column in the latest issue of NAPA Net the Magazine.
“The plan sponsor fiduciary position is one of respect, trust and service,” says Chalk. “Corporate America needs to commit the time, attention and resources to permit the position to develop and flourish.” The spectrum of knowledge required of retirement plan committee members is wide, Calk asserts — encompassing law, regulation, asset allocation, investment theory, human behavior and actuarial concepts. “Moving beyond the breadth of the knowledge spectrum, the discussion becomes one of the depth of knowledge that a plan committee member possesses in each of the topics. Investment advisors and pension consultants benefit by having access to proven and relevant options for obtaining qualified and appropriate training or education.”
Click here to read Chalk’s column; a pdf of the entire 60-page Spring issue is here.
