The statistics are sobering. The average 401(k) plan holds roughly $12.4 million in assets, with larger plans responsible for hundreds or billions of dollars. When committee members lack proper fiduciary training, they're essentially flying blind in one of the most regulated areas of employee benefits law. The consequences aren't just financial—they're deeply personal.
I've witnessed the transformation that happens when committee members receive comprehensive, advanced fiduciary training on a regular basis. Suddenly, vendor presentations are met with sharper questions. Investment lineups are scrutinized through the lens of participant outcomes, not just performance charts. Fee transparency and cost optimization becomes non-negotiable. Most importantly, every decision starts with a fundamental question: "Is this in the best interest of our participants?"
The best-trained committees share common characteristics: they adopt industry leading-edge best practices at a high rate, they document their decision-making processes meticulously, they regularly benchmark their plans against industry standards, they are vigilant about managing costs, they prioritize effective plan design to engineer better outcomes, they provide participants with access to unbiased advice and engagement, and they never stop learning. They understand that fiduciary excellence isn't a destination—it's a continuous journey of improvement and vigilance. And they work with advisors who elevate their fiduciary game rather than simply managing their investments.
Proper fiduciary training and education isn't just about avoiding lawsuits—though the explosion in ERISA litigation makes this impossible to ignore. It's about understanding that being a fiduciary is both a privilege and a profound responsibility. It means recognizing that your decisions ripple through the lives of real people with real dreams and real fears about their financial future.
To every executive who serves on a retirement committee: your employees have entrusted you with their financial futures. That trust deserves to be met with knowledge, preparation, and unwavering commitment to their best interests. Invest in proper fiduciary training. Your participants—and your own peace of mind—depend on it.
But here's where it gets even more critical: the financial advisors serving these committees carry an equally weighty responsibility.
As a 3(21) or 3(38) fiduciary, advisors aren't just service providers—they're co-fiduciaries who share in the legal obligation to act solely in participants' best interests. Yet I've seen too many advisors who focus primarily on investment selection while neglecting the broader fiduciary landscape. They may excel at evaluating investments but struggle to guide committees through proper governance procedures, documentation requirements, or the nuanced decision-making processes that courts scrutinize during litigation.
The most effective advisor/client relationships I observe are built on mutual fiduciary literacy and the pursuit of excellence. When both the committee and their advisor understand their respective roles and responsibilities, magic happens. Committees ask better questions, advisors provide more strategic guidance, and participants benefit from truly fiduciary-level service. These advisors don't just manage investments—they serve as fiduciary coaches, helping committees navigate everything from fee benchmarking to vendor due diligence to participant communication strategies. And they hold committees accountable to take actions they wouldn't otherwise do.
To every advisor serving retirement plans: your clients are counting on your expertise to help them fulfill their fiduciary duties. That expertise must extend far beyond just building a fund lineup and reviewing performance statistics. You need to understand ERISA's procedural requirements, stay current with litigation trends, and be able to articulate not just what decisions to make, but how to make them in a thoughtful (and defensible), participant-focused manner. Especially in nuanced situations that require wisdom and judgement.
Remember that you're not just making investment recommendations or facilitating meetings—you're stewarding dreams. Make sure your fiduciary expertise matches the weight of that responsibility and invest in helping your committee members continuously level up their knowledge..
The question isn't whether you can afford to provide comprehensive fiduciary training. The question is whether you can afford not to. Your participants—and your own peace of mind—depend on it.
Need help? Fiduciary U™ provides advanced fiduciary training and education at scale. Our mission: train every retirement committee member in America. I hope you'll join us.
