Small businesses have a person who does everything. They handle payroll, order supplies, deal with the insurance broker, and somehow know why the copier stopped working. Because they’re dependable, the owner keeps adding responsibilities. Eventually, someone hands them the 401(k) plan and assumes they’ll figure that out, too.
That’s how an office manager becomes an accidental retirement plan expert.
I have nothing against office managers. Many are more organized and more responsive than the owners they work for. But being good at running an office doesn’t automatically teach someone how eligibility works, which compensation counts, or when a payroll problem requires a correction.
The problem is the employer assuming that responsibility comes with knowledge.
If you want an employee to coordinate your retirement plan, give them training, access to the documents, and clear instructions about who to contact. Make sure your TPA understands who handles the census. Make sure payroll knows who reviews contribution reports. Give that employee enough time to do the work.
You also need to give them authority. It’s ridiculous to make someone responsible for getting accurate information while allowing other employees or outside providers to ignore their requests.
And have a backup. Vacations, illness, and resignations don’t suspend the plan’s responsibilities.
The owner still needs to pay attention. Delegating routine work doesn’t mean every difficult decision should land on someone whose job description never mentioned retirement plans.
A good office manager can be an excellent plan contact. They can keep records organized, communicate with providers, and catch mistakes. But they need support from people who understand the technical requirements and management willing to act when issues arise.
Don’t wait for a missed deadline to discover that your retirement plan was being managed through guesswork. If you assign the responsibility, provide the tools needed to handle it properly.