A retirement plan fiduciary is an important, yet complicated, role that many plan sponsors are increasingly seeking assistance with managing. Plan sponsors may find it helpful to hire an external fiduciary to free time and resources, add valuable expertise, and manage fiduciary risk.
The Department of Labor’s fiduciary rule will have a significant impact on the retirement marketplace. The regulation expands the definition of fiduciary investment advice under the Employee Retirement Income Security Act of 1974 (ERISA) and is intended to eliminate conflicts of interest and apply a “best interest” standard to investment advice related to retirement plans, IRAs, and rollovers.
Plan sponsors and financial advisors are increasingly focused on taking the steps necessary to help retirement plan participants have good retirement outcomes. Research finds participants are not confident about their retirement planning abilities or the decisions they have made with regard to their retirement plan.
Since the Department of Labor introduced its fiduciary rule in 2015, retirement plan providers and financial advisors have been making changes to their business approach to adapt to the new regulation.