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Advisor Connect | 3(16) Fiduciary Services and Why You Should Care
MAKING IT ACTIONABLE
In most cases, plan sponsors generally understand that they play a fiduciary role with respect
to the assets of their retirement plan unless they partially or fully outsource that function to a
What many plan sponsors don't recognize is that they also wear another important fiduciary
hat based on their control and authority over the administration of the plan.
The named plan administrator is responsible for many things, including:
Making sure eligibility is determined correctly
Making sure that a number of required notices and mailings go out every year
Making sure that plan-related payroll is properly processed
Overseeing the performance of service providers to the plan
Not only do many employers not realize that they are a fiduciary to the plan, many don't have
the knowledge or experience to properly perform in this capacity. That's why some expert TPAs
and other plan consultants offer ERISA 3(16) services. Under this arrangement, an employer
can outsource their plan fiduciary role and limit their liability and risk, as well as time and effort
in managing their retirement plan.
ACTIONS TO TAKE NOW
Help clients understand the reality of their role
Introduce, where appropriate, the opportunity of working with a 3(16) plan fiduciary
Talk to us to learn more about how we can guide clients to a solution they can rely on.