Our leadership team tackles tough questions from plan sponsors like you.
Frequently Asked Questions:
A: Plan governance refers to the structure, processes, and oversight plan sponsors put in place to ensure the retirement plan runs smoothly, complies with ERISA, and supports participant outcomes. That includes defining fiduciary roles, monitoring service providers, maintaining plan documentation, and managing operations and compliance with care and consistency.
Strong governance isn’t just about avoiding litigation; it’s about fulfilling fiduciary responsibilities and building a foundation for long-term plan health. It involves:
- Delegating oversight to a benefits committee or other co-fiduciaries
- Maintaining accurate, accessible records of plan documents, decisions, and deadlines
- Monitoring plan operations, expenses, participant communications, and vendor performance
- Staying prepared for regulatory or organizational changes
SBA helps plan sponsors assess where their governance practices stand today and build frameworks that support continuity, accountability, and better outcomes for plan participants.
A: Voluntary benefits are often viewed as lower risk because they’re employee-paid and sit alongside core health and welfare plans rather than inside them. That perception can lead to lighter oversight of compensation structures, carrier arrangements, and administrative fees.
The exposure typically arises when compensation is indirect, embedded in premiums, or not clearly documented. As regulatory scrutiny and fee-related litigation continue to expand, voluntary programs are increasingly being examined through the same fiduciary lens applied to other ERISA-covered benefits. That includes how vendors are selected, how compensation is structured, and whether the sponsor has exercised appropriate oversight.
A disciplined review doesn’t mean something is wrong. It means ensuring that fee arrangements are transparent, reasonable, and well-documented. SBA helps plan sponsors evaluate voluntary benefit structures, understand how compensation flows, and confirm that governance practices are aligned with evolving expectations—reducing the likelihood of unpleasant surprises down the road.
A: Deciding to terminate a pension plan is as much a strategic decision as it is a financial one. While termination can reduce administrative burdens and ongoing costs, it also requires an upfront commitment of time, capital, and internal focus. The right decision depends on funding status, accounting position, participant demographics, data quality, market conditions, and how the pension plan fits into your organization’s long-term objectives.
SBA helps plan sponsors assess whether termination is a viable option—now or in the future—by analyzing liabilities, identifying de-risking opportunities, and developing multi-path strategies based on economic conditions and internal priorities. Even when a plan isn’t ready for termination today, having a plan to get there gives sponsors flexibility and control over future decisions.