Outsourcing Plan Sponsor Responsibilities

Today we will be discussing outsourcing plan sponsor responsibilities.

In the past decade, managing retirement plans has become significantly more challenging. Institutions like the Department of Labor and the IRS, as well as legal professionals, have intensified their scrutiny of these plans. This has escalated the risk of noncompliance consequences. Consequently, those in charge of retirement plans, known as plan sponsors, have turned to professionals to help lessen their liabilities.

Can all responsibilities of a retirement plan be outsourced? Absolutely! Plan sponsors have the authority to delegate any task they believe can be executed better by specialists. However, they must carefully evaluate these experts and ensure their services are up to standard and priced fairly.

To begin the outsourcing journey, plan sponsors should identify every mandatory responsibility and then engage specialists who can address these specific needs. While the majority of duties can be outsourced, it's crucial for the plan sponsor to continually monitor the providers and ensure they're fulfilling their commitments and charging reasonably.

For more information on outsourcing plan sponsor responsibilities, contact us today.