Insure Trustees

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Toll Free Phone 1-866-710-3030 Toll Free Fax 1-866-810-3030 email Shaunirwin@insuretrustees.com Do you commit any of THE SEVEN DEADLY SINS OF A TRUSTEE? Avoid these traps and you could Avoid financial disaster! One grave mistake you can make as a trustee is to mix politics with your duties as plan trustee. Serving the needs of fund participants needs to be your first and foremost concern, and setting yourself apart in this role is crucial in avoiding claims. Remember, any claim brought against you as a fiduciary threatens your personal financial security! By staying focused on your responsibilities you can help avoid the pitfalls that lead to claims. Like it or not, your decisions as trustee are open to microscopic scrutiny. This means every decision you make regarding the fund needs to be based on solid, proven data - FACTS. Don't leave yourself with a regrettable claim because of choices based on personal relationships, doing favors, or gut feelings. Base your decisions only in the facts you gather and document your reasoning for the decisions you make. The single most important thing you need to do as a trustee is to get advice about all fund-related actions. Seek the counsel of administrators, lawyers, insurance professionals, actuaries, and investment consultants, and get their advice in writing. Counsel from experts in their respective fields will help you make decisions in the best interest of the fund participants, and documenting the advice you receive could help you stay claim free - a win/win combination! Presence at Meetings. The advancement of technology may tempt you to communicate via email, fax, voice mail, or teleconference; but actually attending important events such as board meetings is critical. Being seen and heard in person and presenting information directly to fund participants regarding investments, securities, finances, or accounting makes your presence unmistakable and genuine. Again, it is extremely important for you to show the facts that affect your decisions, and gain member support for the fund's performance. Offers. Be very careful about who you let influence your opinion. Exotic vacations, job offers for your son or daughter, condo rentals (and just about anything else you can imagine) are things you need to look at with a suspicious eye. Who is trying to twist your arm? Who is doing the twisting and why do they need to do special favors? Often the sweetest offers come from those who you need to guard the most against. Don't let your integrity be compromised in the eyes of fund members or the Department of Labor - it could cost you big time! You need to be aware of all responsibilities and liabilities you incur as a fiduciary, and this includes making sure that all fiduciaries are acting in an appropriate manner. The decisions of all those involved in a fund's performance and distribution reflect on the fund, and on YOU. Make sure the counsel you seek is competent, and hold other fiduciaries to the same high standards you yourself live and work by. Above all, use your best judgment. Remember that all decisions made in connection with the fund must be for the sole benefit of the fund itself.

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