Plan Administrator Fiduciary Services
What is an ERISA Fiduciary Compliance Overview?
Did you know the Employee Benefits Security Administration (EBSA), a part of the Department of Labor, administers, regulates, and enforces Title I of ERISA?
In FY 2023, EBSA recovered $1.4 billion from employers who were out of compliance with ERISA. Additionally, they closed 196 criminal cases and indicted 60 individuals for crimes related to Employee Benefits Plans.
The good news is, when the Department of Labor audits ERISA Health & Welfare or Retirement Plans, they follow a specific set of steps to identify compliance errors.
You can be proactive and conduct an ERISA Fiduciary Compliance Overview to mirror this process. By doing so, you can stay ahead of potential issues that could lead to fines and penalties if your business is targeted by the DOL.
What is a 3(16) Plan Administrator?
The fiduciary responsible for the day-to-day operations of your Health & Welfare or Qualified Retirement Plan is a 3(16) Plan Administrator under ERISA. In most cases, if no other fiduciary is hired, the Plan Sponsor assumes this role.
Important: A Third Party Administrator (TPA) is not the same as a 3(16) Plan Administrator. While TPAs handle ministerial functions, they do not take on fiduciary responsibility. A 3(16) Plan Administrator is an expert in ERISA compliance and shares personal liability for the plan along with the Plan Sponsor.
Key Benefits of Hiring a 3(16) Plan Administrator
An independent fiduciary in the 3(16) role monitors all TPAs and lower-level fiduciaries, ensuring proper plan operation. Here’s what we handle as your 3(16) Plan Administrator:
- Act as Plan Administrator, managing day-to-day operations and assuming personal liability
- Monitor, evaluate, and replace service providers
- Negotiate service agreements
- Prepare and submit government filings (Form 5500, M-1, etc.)
- Review plan expenses
- Maintain key documents (SPD, SBC, Trust Agreements)
- Handle communications with government agencies (IRS, DOL, etc.)
- Audit vendors and reduce fees
- Distribute participant notices
- Ensure HIPAA compliance
Enjoy Hands-Off Planning & Compliance
As ERISA experts, we ensure your Health & Welfare and Retirement Plans are strategically designed and legally compliant. We take care of the administrative responsibility, freeing you to focus on growing your business.
Contact us for a free consultation to see if we’re the right fit to serve as your 3(16) Plan Administrator.
Different RETIREMENT Plan Fiduciarys
ERISA Section 402(a) Named Fiduciary
A 402(a) Named Fiduciary is designated in the plan document with the overall authority to control and manage the operation and administration of the retirement plan. Typically, the Named Fiduciary is the ERISA Section 3(16) Administrator, who is responsible for ensuring the plan operates in compliance with ERISA regulations and overseeing its day-to-day management.
ERISA Section 3(16) Administrator
A 3(16) Administrator is the person or entity designated in the plan document to manage the administration of the retirement plan. If no 3(16) Administrator is named, the employer automatically becomes the default Plan Administrator. The Plan Administrator is responsible for any fiduciary duties that are not taken on by the ERISA Section 403(a) Trustee. This includes ensuring compliance with ERISA regulations and overseeing the day-to-day operations of the plan.
ERISA Section 3(38) Investment Fiduciary
A 3(38) Investment Manager is a fiduciary under ERISA section 3(38) responsible for overseeing the investment options of a retirement plan. As a codified investment fiduciary, the 3(38) is tasked with selecting, managing, monitoring, and benchmarking the plan’s investment offerings. In certain plans, excluding participant-directed plans, the 3(38) may also have discretionary authority to direct the investment of funds. Below is a more detailed list of the responsibilities held by a 3(38) Investment Manager:
- Select and evaluate investment options for the plan
- Monitor the performance of investment options
- Benchmark investments against relevant indices and goals
- Make investment changes and adjustments when needed
- Ensure investment options align with the plan’s objectives and regulatory requirements
- Act in the best interest of plan participants, fulfilling fiduciary duties
ERISA Section 403(a)(1) “Directed Trustee”
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