The protection Section 404(c) of ERISA offers can take expenditures of various resources, but a blog argues that it’s worth the expense.
In “Section 404(c) Compliance: Added Protection Makes it Worth the Effort,” Wells Fargo argues in its blog that the value of the protection Section 404(c ) can provide is worth the time and money it can take to secure it. “For most plan sponsors, the long-term protection it provides easily outweighs the additional effort and costs,” it says.
The blog notes that plans are not alone in seeking to be within Section 404(c)’s protective wing. For instance, it argues, plan providers may have automatic controls that aid in complying with duties under Section 404(c), and it is wise to find out if one’s plan provider does so, and what it offers in that regard.
Next, it suggests, determine what responsibilities remain to be fulfilled and implement a process for doing so. Wells Fargo suggests that this include ongoing needs and creating documentation to substantiate what has been done. This, it says, “may be much less daunting than tackling the initial list on your own.”
“By understanding the requirements and putting the practices in place to fulfill these requirements, 404(c) compliance merely becomes a matter of routine housekeeping,” the blog argues.
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 403(b) Advisor that you would like to contribute or suggest, please contact John Iekel, editor of the 403(b) Advisor, at [email protected].
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