…blocks for many business owners and executives, who often feel that their focus should be on their jobs and not on the legal, moral and ethical obligations involved with being a fiduciary of a retirement plan. By outsourcing the fiduciary role to a knowledgeable third-party…
…which usually refers to instances where a plan fiduciary acts in its own – rather than its participants’ — best interests when administering a plan. “The 401(k) plans sponsored by over 40 financial firms – including most of the largest companies in this sector –…
…working in the field, one that offers fiduciary outsourcing and 3(16) administrative services. An independent ERISA Section 3(16) fiduciary relieves an employer of nearly all fiduciary liabilities for their plan. Why is it important to use a 3(16) administrative fiduciary for your plan? Because of…
…losses resulting from fiduciary breaches. Having a plan committee charter may help mitigate fiduciary liability for the committee members by carefully outlining the members’ roles and responsibilities. Further, having an ERISA 3(16) Fiduciary Administrator may also help to reduce fiduciary liability risk for a retirement…
…versus external risk factors such as tariffs, slowing global economies, Brexit, oil prices and geopolitical tensions. 3. Where are regulations around fiduciary standards headed? In 2018, the move toward a uniform fiduciary standard for brokers and advisors was disrupted when the Department of Labor (DOL)…
…the role of a plan fiduciary and the responsibilities fiduciaries have to a retirement plan and its participants. The Pentegra Fiduciary SmartPathTM is designed to help you understand your fiduciary responsibilities and corresponding liabilities and offers best practice recommendations and guidance for managing these duties.”…
A penny saved may be a penny earned, as Benjamin Franklin once said – but then, Ben never had to worry about 3(16) compliance. The benefits of hiring a third-party ERISA § 3(16) fiduciary can include minimizing risk by having in place someone who makes…
…Revenue Service (IRS), which determined that the matching true-up was calculated incorrectly. The employer went to their then-plan service provider – which was not acting in a fiduciary capacity — whose response essentially was that the employer must have supplied them with the wrong numbers….
…always widely reported. A reputable adviser with a track record of monitoring such activities can be of immeasurable value here. Consider outsourcing fiduciary responsibility. This is another tip that we regularly share, but it bears repeating as we (hopefully) start returning to “normalcy.” Outsourcing fiduciary…
…the game is afoot. For a discussion of current fiduciary law and the country’s options with respect to standards of care, see my paper “Blueprint for a Universal Fiduciary Standard of Care in the U.S. Financial Services Industry,” published in the New York University Review…
…or complaints that may indicate a fiduciary breach are referred for investigation. In fact, some 70 percent of plans investigated by the DOL are found to be in violation of ERISA. Inadvertent – or, more problematically, advertent – ERISA violations can obviously have a devastating…
…avoid errors. Outsourcing responsibility by engaging an independent fiduciary also helps plan sponsors design a more effective plan that is compliant and easy to administer. Providing these and other valuable fiduciary services give plan sponsors more time to run their business. Oh, and we have…