The Hidden Governance Risks in Employee Benefit Plans

Most nonprofit boards are overlooking a fiduciary risk hiding in plain sight: employee benefit plans. If your organization has a 401(k), 403(b), or a defined benefit retirement plan, this episode explains why the board may already be the default fiduciary—and what that means for compliance, oversight, and personal liability. Joe Blatt brings 40 years of public accounting experience to the conversation, breaking down the governance blind spots that can leave well-meaning nonprofit boards exposed. He explains why employee benefit plans are not just an HR issue, why undocumented decisions create real risk, and why “if it’s not documented, it didn’t happen” is more than just a saying. In this episode, you’ll discover: ·       The three core fiduciary duties under ERISA: Care, Loyalty, and Obedience ·       Why nonprofit boards can become personally responsible when no committee is formally designated ·       The difference between defined benefit and defined contribution plans ·       How a benefit plan committee charter improves governance and accountability ·       The key oversight areas boards must monitor, including plan administration, investments, vendors, compliance, documentation, and data security Joe also shares common litigation patterns affecting universities, hospitals, and nonprofits—from imprudent investment choices and excessive fees to poor monitoring, weak committee meetings, and incomplete documentation. He explains how these failures can lead to costly settlements and why many organizations do not recognize the risk until it is too late. If your board oversees a retirement plan, this episode offers a practical roadmap for strengthening governance, protecting employees’ savings, and reducing liability before a compliance issue becomes a crisis. Essential listening for nonprofit leaders, board members, CFOs, and anyone responsible for retirement plan oversight.