If you’re a 401(k) plan sponsor, you don’t need to be an ERISA expert—you just need to avoid doing dumb things. Here are a few quick tips to help you stay on the right side of your fiduciary duties and keep your participants (and the DOL) happy:
1. Review your fees. Regularly. Don’t assume your plan is “fine” because no one’s complained. Benchmark your recordkeeping and investment fees every 2–3 years. Overpaying is not a victimless crime.
2. Document everything. If a tree falls in the forest and no one documents it, it never happened. Same goes for committee meetings. Keep minutes, note your process, and show your work.
3. Don’t just set it and forget it. ERISA doesn’t reward autopilot. Review your investment lineup at least annually. Performance, fees, share classes—all of it.
4. Watch your provider relationships. Just because your advisor or TPA is a nice guy doesn’t mean they’re giving you the best deal. Loyalty is great in friendships, not in fiduciary oversight.
5. Educate yourself. You don’t need to become an ERISA nerd like me, but you do need to understand the basics. Fiduciary responsibility is personal—ignorance is not a defense.
Do the right thing. Ask the tough questions. And if something feels off, it probably is. Better to be proactive now than be a case study in a class action later.
