An Independent Practice

An Established System

One of the four particular standards the Employee Retirement Income Security Act (ERISA) demands of plan fiduciaries is “duty of prudence.” An employer who offers a retirement plan is the plan sponsor and as such is named as fiduciary to the plan. Fiduciaries are obligated to establish prudent procedures and document the process for their investment decisions. Establishing and adhering to an appropriate process not only reduces the personal liability of the plan sponsor, but provides a framework so that decisions are made within the guidelines of the plan and in their employees' best interests

The trend in recent law and regulation is towards greater formality in policies and procedures, and the processes that ensure the policies and procedures are effective. Our process, illustrated from the initial discovery stage through to design, implementation and management, provides the organizational framework plan sponsors need to understand and control all aspects of their retirement plans.

By following and documenting this process our clients' fiduciary risk is reduced and they are better positioned to adapt to changing laws and regulations.

 
2 HMS ESSINGTON Dr. Hingham Shipyard | Hingham, MA 02043 | T: 877.741.2540 | F: 781.741.2541 | Disclosures | Form CRS | Form ADV Part 1 | Form ADV Part 2A