Let's explore some of the best methods to keep your fiduciary files in order.
Proper documentation serves as evidence of your diligent fiduciary oversight. It helps to show that you are actively managing your company's retirement plan in accordance with ERISA regulations.
Now, let's explore some of the best methods to keep your fiduciary files in order:
1. Create a Fiduciary File System
Designate a secure location, preferably a locked file cabinet or encrypted digital storage space, for all plan-related documents. This includes the plan document, amendments, participant communications, government filings, and investment reviews.
2. Implement a Document Retention Policy
Develop a policy that outlines for how long different types of documents should be retained. For instance, the plan document and amendments should be kept permanently, while records related to plan operations should typically be kept for at least six years.
3. Regularly Update Your Files
Make it a habit to update your files regularly. This includes adding new documents as they come in and removing outdated ones based on your retention policy.
4. Use Clear Labeling and Categorization
Clearly label each document with its type and the date it was created or received. Categorize documents based on their nature, such as plan administration, investment management, participant records, and compliance tests.
5. Ensure Accessibility While Maintaining Confidentiality
Balancing accessibility with confidentiality is vital when managing fiduciary files. The documents should be readily retrievable as needed, yet stored in a manner that protects sensitive data from unauthorized access. Implement safeguards such as password protection for sensitive documents and restrict access to authorized personnel only.
One of the many benefits of maintaining organized fiduciary files is how much easier it makes compliance testing. By having clean data and organized files, this task becomes significantly less daunting. However, you don't have to navigate this path alone. Partnering with an experienced Third-Party Administrator can offer valuable assistance, provide answers to your questions, and help ensure you're on the right track.
If you need assistance, we can help! Give us a call at 860-RPS-401K (860-777-4015).
The Alliance Team
(860) 777-4015
(860) RPS-401K
FAX (269) 324-3834
This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations.
Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.
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