An employer should establish and follow a formal review process, performed at reasonable intervals, to decide if it wants to continue using the current service providers or look for replacements.
When monitoring service providers, actions to ensure they are performing the agreed-upon services include:
- evaluating any notices received from the service provider about possible changes to their compensation and the other information they provided when hired (or when the contract or arrangement was renewed);
- reviewing the service providers’ performance;
- reading any reports they provide;
- checking actual fees charged; and
- asking about policies and practices (such as trading, investment turnover and proxy voting); and
- following up on participant complaints.
Editor’s Note: ERISA Tips is a feature provided with you in mind — to make the newsletter more useful to you! If you have any content for ERISA Tips or the NTSA Advisor that you would like to contribute or suggest, please contact John Iekel, editor of the NTSA Advisor, at [email protected]
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