Final answer:
Annual administration reviews are not a risk associated with providing Trustee Services to retirement plans; they are a compliance measure. The main risks involve monitoring contributions, recordkeeping, and managing benefit payment systems.
Step-by-step explanation:
The subject of the question concerns the significant risks associated with providing Trustee Services to retirement plans. Significant risks include monitoring the timely contributions of employee deferrals into 401(k) plans, ensuring that participant recordkeeping is accurate with a core trust accounting system correctly interfacing, and guaranteeing that benefit payment systems account for and report taxes properly. However, the requirement of annual administration reviews is not a risk but a compliance activity aimed at ensuring that the risks are managed properly. Defined contribution plans like 401(k)s and 403(b)s, where employers and employees contribute to the retirement accounts, are portable and tax-deferred, providing the investment generates real rates of return and saves retirees from the inflation costs typical to traditional pensioners.
Significant risks associated with providing Trustee Services to Retirement plans include monitoring the timely contributions of employee deferrals into 401(k) plans, participant recordkeeping requiring the core trust accounting system to properly interface, and benefit payment systems that must properly account for and report tax payments. None of these options are exceptions. Therefore, the correct answer is d. required annual administration reviews.