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Fiduciary Commitment

Retirement plans are subject to many regulations issued by the Department of Labor and the IRS. The most notable legislation governing retirement plans is the Employee Retirement Income Security Act of 1974 (ERISA). Since the passage of ERISA, there have been numerous regulations promulgated to clarify ERISA requirements along with several pieces of tax and budget legislation that impact the manner in which retirement plans are administered. 

NWCM clearly understands the importance of maintaining compliance with all pertinent regulations and possesses the expertise, technology, and procedures to help keep retirement plans in regulatory compliance. NWCM provides the investment oversight, fiduciary investment monitoring, and participant education to meet the prudent expert requirements.

ERISA Section 405(d)(1) provides that plan fiduciaries may delegate investment management responsibilities to an investment manager and secure statutory relief from liability associated with acts or omissions of that investment manager provided two conditions are met:

  • The investment manager acknowledges in writing its fiduciary status (among other requirements); and
  • The plan's trustees monitor the performance of that investment manager.

NWCM provides, in hard copy and online, easy-to-read monitoring reports that document investment performance compared to the appropriate guidelines and benchmarks of the plan's Statement of Investment Policy (SIP).

ERISA Section 404(c) provides that plan fiduciaries can be relieved from liability resulting from a plan participant's individual investment decisions by, among many requirements, providing a properly diversified set of investment options, making available very specific information about those alternatives, and allowing participants to make frequent investment changes. Plan fiduciaries can be comfortable with NWCM's comprehensive capability in meeting the requirements of 404(c).

 

NWCM embraces its role as a fiduciary to the plans we serve. We contractually acknowledge this responsibility in each client relationship.