Retirement Committee Field Guide: Recent Episodes
Mintz
There are almost 600,000 U.S. 401(k) plans. These plans collectively cover more than 100 million participants. They have nearly $6 trillion in assets. Two principal laws governing these plans, the Internal Revenue Code (the “Code”) and the Employee Retirement Income Security Act (ERISA), set out a series of rules that are mind-numbingly complex. In or about 2007, a plaintiff class action law firm sued a dozen very large 401(k) plans of name-brand employers generally alleging plan mismanagement. What started as a “trickle” of lawsuits morphed into a torrent in the years that followed, and there is no sign of the trend abating. Plan sponsors have responded by focusing on plan compliance and governance, which includes the establishment of retirement plan fiduciary committees, which tend to be consult-advised and subject to formal, written policies and procedures.
The purpose of the Retirement Committee Field Guide podcast is to educate retirement committee members and their advisors on committee composition, management, training, and best practices. Each month we interview a guest such as a retirement plan advisor or consultant committee member, or academic to provide insight on fiduciary basics, committee governance, emerging best practices, developing law, and related topics.
In this episode, we speak with Krista D'Aloia, Vice President and Associate General Counsel at Fidelity Investments, about the role of the 401(k) retirement plan “platform provider.” Platform providers are an indispensable part of 401(k) retirement plan maintenance and operation. They keep the plan’s records, provide access to investment vehicles, handle non-discrimination testing, assist in the reporting process, and otherwise help with overall plan compliance. In the course of our discussion, Krista offers valuable insights into the role of a platform provider generally, with an emphasis on industry challenges, the role and changing nature of participant education, and the impact of the Department of Labor’s recent focus on cybersecurity. She also assesses and speculates on the policy changes that Congress is considering in legislation commonly known as the “SECURE Act 2.0.”
In this episode, we are joined by Ryan Campagna, Senior Vice President - Retirement Plan Advisory at Sentinel Benefits & Financial Group, who will help us continue our exploration surrounding what retirement committees do and how they operate.
In this episode, we are joined by Mark Wetzel, Managing Partner, President of Fiducient Advisors, who will help us continue our exploration surrounding what retirement committees do and how they operate.
In this inaugural episode in our series, Mintz’s Alden Bianchi interviews Marsh & McLennan Agency’s Bob Clark to explore the basics of retirement plan governance, with a particular focus on the following topics:
- What a fiduciary committee is and why it exists
- Who should be on the committee (and who should not)
- How ERISA regulates plans, and the need for fiduciary governance
- A description of “3(16),” “3(21),” and “3(38)” advisors
- How retirement plan governance has evolved over time