ERISA Section 404(c) may offer some relief to plan sponsors. But plan sponsors that do not force participants to take affirmative control of their investments, and clearly indicate investment choices, are NOT protected by 404(c).
The PROgram can help you with your 404(c) compliance.
ProManage accepts fiduciary responsibility for all services we provide and will accept named fiduciary responsibility as co-fiduciaries under ERISA Sections 405(c) and (d). For those participants who do not choose their own investments, the plan sponsor is responsible for their allocations.
When a plan sponsor delegates fiduciary responsibility to an investment "expert", it has clear legal implications under ERISA Section 405. The plan sponsor is required to carefully select and monitor the investment advisor to be certain the advisor is following its own disclosure and review procedures. Monitoring is not about validating investment performance.
We enhance your 404(c) protection by getting a written acknowledgement from participants who choose self-direction that they could have had an expert invest for them and declined.
The PROgram provides 404(c) enhancement and adds 405 protection that can significantly reduce your fiduciary risk.