A Part of IRM: Fiduciary Risk By Jamie Collier & Jim Plaster

Condition – Member’s Fiduciary Exposures: Lack of monitoring Investment Performance Lack of monitoring fees charged to participants Lack of competitive analysis and procurement in record keeping services Administrative & Record Keeper services ignored or left on “auto pilot” Etc.

Coverage: WSTIP’s SIR Layer GEM Layer – reportedly not covered Excess Layer - ??

Initiative: (Reduce Exposure to Pool) Exclude coverage in SIR (leave all members bare) Continue coverage in SIR Seek additional coverage in GEM & other excess layers Improve loss avoidance  Establish a pooled resource for monitoring investment performance, fees, competitive analysis and procurement of record keeper services, etc.

Initiative (continued):  It is possible to efficiently and effectively accommodate many individual plans in a pooled environment for reduction of risk

Recommendations: Treat Fiduciary Exposures as any other exposures for members under our IRM philosophy Pursue a common understanding that our pool desires to provide broad coverage (rather than narrow) of all liability risks our members have responsibility for.

Recommendations (continued): Improve our loss avoidance assets and tools for Fiduciary Exposures thru an efficient & effective process. (A pooled resource for monitoring employee benefit funds investment performance, fees, competitive analysis & procurement of record keeper services, etc.)