Eliminate Fiduciary Responsibility

Before 401k|SAFE® (Employer requirements)

Adopt Investment Policy Statement
Form Investment Committee
Develop written processes
Evaluate investment managers
Provide participant education
Adopt and adhere to 404(c) compliance
Hire co-fiduciary
Administer plan provisions
Conduct annual plan audit

After 401k|SAFE® (Employer requirements)

Serve as a Co-Fiduciary

What a Difference a Year Makes...

February 20, 2008:
In a recent case, the Supreme Court opened the door for individual plan participants to sue plan fiduciaries for breach of their fiduciary investment responsibilities. In today's volatile investment environment, Americans are greatly concerned with their 401(k) balances.
September 15, 2008:
The week that began the Global Financial Crisis of 2008-2009.
March 9, 2009:
The DJIA closes at 6,547, approximately 57% of it's value from the week of September 15th, 2008.

Why is this important?

As an employer who sponsors a 401(k) retirement plan, you have financial risk today you could have never imagined a year ago. If you're the CEO, CFO or manager in charge of directing the administration of your 401(k) retirement plan, you are a fiduciary of the plan and have personal liability associated with this. The good news is that the Department of Labor and ERISA have issued regulations and guidelines that if followed, will minimize the liability. The bad news is that most employers are not aware of these rules and don't have the internal resources to adequately comply. While more and more vendors have increased their fiduciary services, they are limited in scope. Ultimately the liability is with the plan sponsor, administrator, trustee and lead fiduciary which makes 401k|SAFE® retirement plan a unique offering in today's environment.

(S)ponsor

401k|SAFE is a Sponsor of the 401k| program and our Client becomes co-sponsor of the retirement plan.

As a Sponsor, we design and maintain the 401(k) plan document by keeping up with applicable laws and provisions.

(A)dministrator

We become the administrator of the 401k|SAFE® retirement plan. As the plan administrator we provide ongoing services that include: process contribution files, loans and distributions, process 401(k) plan provisions, provide information and education to plan participants in compliance with ERISA, conduct annual audit of 401(k) plan, reconcile participant account balances and file 5500 form.

(F)iduciary

Many vendors are now offering fiduciary warrantees for various components of the risk 401(k) retirement plan. 401k|SAFE® is unique in that our solution is comprehensive.

With 401k|SAFE®, we are the Fiduciary and Trustee and our client becomes a Co-Fiduciary.

(E)asy

Our clients maintain plan design flexibility for employee match, vesting and profit sharing without having to deal with the never-ending paper work and regulations they would incur with other vendors.