Managing Your Firm’s 401(k) Plan is written for finance and benefits professionals in the field of creating, managing, and sponsoring employee 401(k) plans. With the current financial and economic downturn, now, more than ever, 401(k) plans are being much more closely observed and adjusted. This book offers a step-by-step guide to building and managing a firm-wide 401(k) plan that meets financial, fiduciary, and regulatory standards. Topics will include: Measuring plan effectiveness Identifying and eliminating conflicts of interest Establishing cost effective operations Creating regulatory and fiduciary procedures Identifying and training plan fiduciaries Obtaining the most from service providers Creating an effective investment policy Selecting and maintaining the plan investment line-up Communicating effectively to employees
Book Details:
- Author: Matthew X. Smith
- ISBN: 9780470553008
- Year Published: 2010
- Pages: 256
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Managing Your Firm’s 401(k) Plan is written for finance and benefits professionals in the field of creating, managing, and sponsoring employee 401(k) plans. With the current financial and economic downturn, now, more than ever, 401(k) plans are being much more closely observed and adjusted. This book offers a step-by-step guide to building and managing a firm-wide 401(k) plan that meets financial, fiduciary, and regulatory standards. Topics will include: Measuring plan effectiveness Identifying and eliminating conflicts of interest Establishing cost effective operations Creating regulatory and fiduciary procedures Identifying and training plan fiduciaries Obtaining the most from service providers Creating an effective investment policy Selecting and maintaining the plan investment line-up Communicating effectively to employees
Since the early 1980’s when 401(k) plans first came into existence, they have grown to amass several trillions of dollars. (Exact estimates are hard to pin down but prior to the market downturn starting in October 2007, there was an estimated $4+ trillion in 401(k) plans). With that much money at stake an entire industry has sprung up to service 401(k) plans. Regulations of 401(k) plans have evolved over the years with an increase in regulation corresponding fairly well to the increase in assets. While complying with regulations should be a given, plan management best practice leaves considerable room for variation. Given the number of industry participants that serve this market there is no shortage of opinions on how a plan should be managed. However, not all these opinions come from purely objective sources. At issue are the inherent conflicts that arise as service providers, asset managers and financial intermediaries play a role in plan management while at the same time they may stand to benefit financially from how the plan is structured and managed. In short, the employer (the plan sponsor) needs an objective resource for advice on how to manage their 401(k) plan.
Much needed resource on professionally managed 401(k) plans. While there are plenty of books on retirement and 401(k) plans written for the individual investor, there is a real lack of resources for the professionals involved in 401(k) management. Includes regulatory and fiduciary information needed for compliance purposes. Given the current financial meltdown, professionals must be up to speed on all legal requirements, some of which may be revised and revisited in the coming months. AON to support the book. AON, a consulting firm in the retirement area, will support the book through client and prospective client communications, while also doing a separate media release for the book.
About the Author
Matthew X. Smith (Seattle, WA) is the National Defined Contribution Practice Leader in the United States for AON Consulting. Prior to his role at AON, he was managing director of retirement services for Russell Investments. Aon Corporation is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its 37,000 professionals worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions.He has been involved with the design, implementation, administration, consulting to, and asset management of defined contribution plans for over 25 years. He has also written and spoken widely on topics involving defined contribution plans during his career. Smith has been quoted by numerous trade and professional publications, including PlanSponsor, Employee Benefit News, and Pension & Investments.