Retirement Programs

• Retirement Programs Main
• Plan Types
• Fiduciary Responsibility
• Investment Manager Selection and Monitoring
• Investment Policy Statement
• Complying with ERISA Section 404 (c)
• Fidelity Bond Coverage
• Employee Communications
• Plan Administration and Compliance
• Maintaining Plan Records
• Mesirow Quarterly Report

Fiduciary Responsibility - An Overview

Fiduciary responsibility has been a growing concern among sponsors of qualified retirement plans over the past several years. Government agencies such as the Internal Revenue Service and Department of Labor issue rules and regulations that must be followed in order for plans to operate in a non-discriminatory manner and to ensure that employee’s rights are protected. As a retirement plan sponsor, you need to be aware of your responsibilities relating to the day-to-day administration of your Plan, and to understand what steps you can take to comply with the rules and regulations that govern qualified retirement plans.

While there are many regulatory issues that could potentially apply to you as a qualified retirement plan sponsor, this site will help illustrate the most common fiduciary issues facing plan sponsors today. Although we do not offer legal or investment advice, we’ll show you how Symetra Financial, your Third Party Administrator and your Symetra Financial Professional will work with you to understand your fiduciary responsibilities and provide you with the tools you need to make informed decisions.

• Who is a plan fiduciary?
• What rules define a plan fiduciary’s responsibilities?
• What are some additional responsibilities of a plan fiduciary?
• What role does the Internal Revenue Service (IRS) serve?
• What is the Employee Retirement Income Security Act (ERISA)?
• What role does the Department of Labor (DOL) serve?

Who is a plan fiduciary?

Plan fiduciaries have responsibility for the establishment and ongoing administration of the plan, as well as the selection of investment options and service providers.

Common examples of fiduciaries include:

• Plan Trustee – an individual or entity that holds title to assets in trust for the benefit of plan participants and their beneficiaries. A trustee is always a fiduciary.
• Plan Administrator – a person or entity responsible for the day-to-day administration of the plan and generally designated in the plan document. The Plan Administrator should not be confused with a Third Party Administrator (TPA). A TPA is typically not a fiduciary.
• The sponsoring employer
• The employer’s board of directors
• Officers of the employer who are responsible for decisions that affect the plan

What rules define a plan fiduciary’s responsibilities?

There are several rules that generally define a fiduciary’s responsibilities:

• Prudent Person Rule – states that fiduciaries must carry out all duties with the care, skill, prudence and diligence of a prudent person acting in a like capacity and familiar with such matters would use.
• Diversification Rule – states that fiduciaries should diversify plan investment alternatives so as to potentially minimize the risk of large losses.
• Exclusive Benefit Rule – states that fiduciaries must discharge their duties for the express purpose of providing plan benefits to participants and their beneficiaries and defraying reasonable administrative expenses.

Fiduciaries must also discharge their duties in accordance with the terms and provisions of the plan documents and other instruments governing the plan, such as trust agreements, except when they violate ERISA.

What are some additional responsibilities of a plan fiduciary?

Fiduciaries are also responsible for:

• Selecting an investment provider and investment options
• Monitoring investment options
• Maintaining an Investment Policy Statement
• Complying with ERISA Section 404(c) (if applicable)
• Maintaining accurate records
• Employee communications
• Obtaining a fidelity bond
• Monitoring plan administration and compliance

What role does the Internal Revenue Service (IRS) serve?

One of the advantages of establishing a plan is favorable tax treatment for the plan assets. The IRS is charged with ensuring that your plan qualifies for those favorable tax benefits by making sure that your company is in compliance with the provisions of the Internal Revenue Code. The IRS helps you keep your plan in compliance by:

• Reviewing your plan and issuing a favorable determination letter
• Issuing guidance on applicable laws
• Auditing plans on a random basis
• Providing support for plan sponsors

What is the Employee Retirement Income Security Act (ERISA)?

ERISA was passed in 1974 to protect the security and well-being of millions of retirement accounts. Under ERISA, plan sponsors are required to design and operate their retirement plans for the exclusive benefit of participants and their beneficiaries. ERISA also sets standards of conduct for those who manage employee benefit plans.

What role does the Department of Labor (DOL) serve?

The DOL is charged with watching over the assets of the nation’s retirement plans. One of its responsibilities is administering and enforcing the requirements established under ERISA. The DOL does this by:

• Ensuring that plan participants receive plan information such as participant statements and Summary Plan Description
• Reviewing plan assets to ensure compliance with fiduciary laws under ERISA
• Monitoring the actions of plan sponsors, fiduciaries and trustees
• Educating employers and employees about the benefits of retirement plans
• Following-up on complaints received from plan participants

Investment Manager Selection and Monitoring
Symetra applies a proprietary process to identify the investment managers and options to include in its retirement programs, and then regularly monitors them to ensure they meet established performance criteria.

Investment Policy Statement
ERISA encourages fiduciaries to establish a written Investment Policy Statement to document the plan’s investment objectives and criteria for managing plan assets.

Complying with ERISA Section 404(c)
ERISA 404(c) applies to participant-directed account plans like 401(k) arrangements and offers protection to plan fiduciaries for the results of investment choices made by plan participants.

Fidelity Bond Coverage
Provides a resource for plan fiduciaries to obtain a fidelity bond as required by law.

Employee Communications
Shows how Symetra assists you in the employee communication process.

Plan Administration and Compliance
Outlines the responsibilities of being a Plan Administrator.

Maintaining Plan Records
Documents which help you maintain your plan records.

Before investing carefully consider the investment objectives, risks, charges and expenses. With the exception of our Group Variable Annuity, this and other information is contained in the prospectuses. Please call or write your Registered Representative or Symetra for free copies of the prospectuses and read them carefully before investing.

Variable annuities, which are suitable for long-term investing, and mutual funds are subject to market risks, including the potential loss of principal invested.  Securities are offered through Symetra Securities Inc., member SIPC, Bellevue, Washington 98004.Annuities are issued by Symetra Life Insurance Company, Bellevue, WA. Distribution of the bundled mutual funds programs are provided by Symetra Investment Services Inc. Symetra Financial is a team of insurance and financial services companies, including Symetra Life Insurance Co. (Bellevue, WA), Symetra Investment Services Inc., Symetra Securities Inc. and other affiliated companies.