…like a good time to revisit the topic and provide some updates. Discussions about changes to the fiduciary standard as applied under the Employee Retirement Income Security Act of 1974 (ERISA) took some five years, with the new fiduciary rule finalized by the U.S. Department…
…which makes hiring of an independent 3(16) fiduciary so attractive. A 3(16) fiduciary can help ensure that each plan is administered in compliance with the new rules, and that CARES Act features that can help the plan’s participants get through this difficult time are all…
…a 3(16) fiduciary acts as the sole plan administrator, and therefore is responsible for managing the plan’s day-to-day operations. A 3(38) fiduciary can only be a bank, insurance company, or registered investment adviser; here the plan sponsor hands over authority to the 3(38) fiduciary to…
The fiduciary rules governing investment advice by Registered Investment Advisers (RIAs) and broker/dealers are currently in a state of transition. The “DOL” prefix no longer applies- the 2017 Department of Labor (DOL) fiduciary standard, also known officially as the “Conflict of Interest” rule, was repealed…
…As retirement plan providers and advisor-partners, it is incumbent upon our industry to remind plan sponsors of these responsibilities. In some cases, outsourcing these fiduciary responsibilities might be an even better solution. Distraction. This can be a significant contributing factor to litigation. As a recent…
…against losses due to fraud or theft by people who handle the plan’s funds or property. Fiduciary insurance, on the other hand, protects the fiduciaries themselves against losses due to breaches of fiduciary responsibility. It’s important to note that while many plan fiduciaries may have…
…too, play an investment fiduciary role unless they partially or fully outsource that function to an investment professional. What many of them don’t appear to recognize is that they also wear another important fiduciary hat based on their control and authority over the administration of…
…fiduciary outsourcing — the transfer of legal responsibility for a retirement plan to an institutional fiduciary. Many employers select themselves as the ERISA Named Fiduciary, 3(16) Plan Administrator, and Trustee because they believe there are few other options – but that is not the case….
…the roles each have played in governance and corporate policy. Public pension plans have shareholder agendas which are generally more activist and reflect the governance views of its trustees. The trustees are often headed by a state or local official. For example, the New York…
…– and thus (hopefully, at least) lessen the chances of missteps – is to reduce those “chores” by hiring professional fiduciaries and outsourcing some of the work. Something that can be easily overlooked is the plan document itself. This approximately 140-page legal document frequently goes…
…the emails my company sent with the required notices and delivery instructions … but he assumed we were handling them. We were not.” The lesson here should be self-evident: If in doubt, re-read your plan document – or at least consult with your 3(16) fiduciary….
Today, 3(16) fiduciary outsourcing is becoming a part of every conversation that advisors have with their clients. Why? Because implementing 3(16) fiduciary outsourcing services is like hitting the easy button for plan sponsors. Please join us on March 16th at 3:16p.m. for Pentegra’s inaugural 3(16)…