From the desk of Steff C. Chalk, President
CHALK 401(k) Advisory Board

Today's Plan Sponsor and Service Provider have tremendous responsibility to the Participants of 401(k) Plans. Both are responsible for the orderly administration, recordkeeping, investing and safety of Participant directed retirement dollars.

Trustee Section

There are basic concepts that each Plan Sponsor and Plan Trustee MUST understand. Comprehension of these concepts is not optional for the Plan Trustees, since it is the Trustee that is responsible for the Plan Participant's Investments, Education and Safety of Assets. One of the tools available to Plan Trustees in the management of their responsibilities is the Investment Policy Statement. According to Charles D. Ellis, in his book, "Investment Policy, How to Win at a Loser' Game", "...Soundly conceived, persistently followed, long-term investment policy is the pathway to success in investing."Does your 401(k) Plan have a Statement of Investment Policy?Are you prepared? Were your Participants prepared for "the stock market's major downward move?"How do you (as Trustee) manage the fees associated with your 401(k) Plan? How frequently do your Trustees monitor performance of investment managers? Is it a true documented review or is it a verbal or passive rubber stamp? What is the proper methodology for managing the Education process for 401(k) Plans? Do you comprehend the fee structure being charged in your 401(k) Plan? It is a requirement that you do!

Do not overlook your responsibility as Trustee.