Plan enrollment/education meetings are more than just an exercise


As a 401(k) plan sponsor, you need to understand that an integral part of limiting your liability when participants are having plan enrollment/education meetings.


You need to treat them less as a nuisance and more of a tool in limiting your liability. When a participant is directing their own investment, you need to provide participants with enough information for them to make informed investment decisions. A great tool in providing that information is making sure your financial advisor provides investment education to plan participants.


You shouldn’t treat enrollment/education meetings as a nuisance like a visit to the dentist, They need to be held consistently and can’t be delayed. Not having these meetings is evidence that you weren’t fulfilling your role as a plan fiduciary in getting participants enough information they need to make informed investment decisions which are supposed to limit your liability under ERISA 404(c).

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