graphic of woman seeing dollar sign thru telescope Look what happened to the role of the plan sponsor. (Photo: Shutterstock)

Back in the stone ages, once companies reached a certain size, they were obligated to provide a retirement plan. They needed to offer the promise of a worry-free old age in order to compete with other companies for workers.

The promise didn't have to actually be fulfilled. Indeed, there were so many employment provisions in traditional pension plans that far fewer retirees realized the benefits promised them than many today assume. Still, pensions became such a liability that companies – as a result of shareholder behavior – sought to ensure sustainability by replacing defined benefit plans with defined contribution plans.

While this shift did help from a corporate finance standpoint, it failed to reduce the fiduciary liability of the plan sponsor.

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Christopher Carosa

Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).