Understanding Fiduciary Liability

Fiduciary Liability: Protecting Your Company and Employees

At Waypoint, we know how important it is for your company to watch over benefit plans as a plan sponsor and fiduciary

If your employees contribute to your benefit plan, your company is acting as a fiduciary with their contributions. This means you must carefully monitor plan service providers to protect your employees’ interests. If you don’t, it can hurt their financial future and put your company at legal risk.

Find out if our benefit plan monitoring technology can reduce the risk your company may be exposed to by clicking here.

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Understanding Fiduciary Responsibility

As a fiduciary, your company is legally obligated to act in the best interest of your employees regarding their benefit plans. There are two main Plan Sponsor Fiduciary Duties.

Plan Sponsor Fiduciary Duties

  1. Monitoring Service Providers: Ensuring that the service providers managing your benefit plans are performing their duties effectively and ethically.
  2. Documenting Oversight: Keeping thorough records to prove that you are actively monitoring these providers and managing the plans responsibly.

Answer a few questions to find out if your company should be monitoring your benefit plan service providers by clicking here.

The Consequences of Non-Compliance

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If you cannot demonstrate effective management and oversight of your employees’ benefit plans, your company could face serious legal trouble. For example, Johnson & Johnson is being sued by employees for not meeting their fiduciary duties. This is a strong reminder of the risks.

Read more about the case in this Wall Street Journal Article

Assessing Your Fiduciary Liability

The level of fiduciary liability your company is exposed to can be determined through a detailed analysis of benefit plan-generated data. By understanding this data, you can identify areas where your fiduciary responsibilities may be lacking and take steps to address them.

Find out if our technology can reduce fiduciary liability your company may be exposed to by clicking here.

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Fiduciary Review Technology

Waypoint offers advanced Fiduciary Review Technology designed to simplify and enhance the analysis of your plan service provider data and performance.

Answer a few questions to find out if our technology can reduce fiduciary liability your company may be exposed to by clicking here.

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