Fiduciary outsourcing is the transfer of responsibility associated with running a retirement plan to an institutional fiduciary. The key advantage fiduciary outsourcing offers plan sponsors-the expertise that comes with a comprehensive fiduciary governance process to ensure better results. WHAT ARE THE KEY FIDUCIARY RESPONSIBILITIES INVOLVED…
done so. WHAT DOES A FIDUCIARY GOVERNANCE PROCESS LOOK LIKE? A good fiduciary process should include the following: Identification of fiduciaries, including a process for selecting and monitoring them; Allocation and delegation of fiduciary duties: ”Allocation” is the term for division of responsibilities among named…
fiduciary” is actually a non-specific role. It is as general as the term “fiduciary” with one added bit: Not only is the person a fiduciary, s/he is named as such in the plan document or under a procedure specified in the plan document. But what…
named fiduciary is, therefore, the plan’s CEO; the trustee, its CFO; the 3(38) investment fiduciary, the plan’s CIO; and the 3(16) administrative fiduciary is its COO. The ERISA-named fiduciary/CEO holds the highest level of fiduciary responsibility for the plan, acts as its principal fiduciary and…
more unrelated employers participate. As each bank has its own separate boards of directors, the advantages of having an independent fiduciary to manage and administrate the plan are readily apparent.All of that said, there will remain some fiduciary responsibilities and liabilities for the fiduciary responsible…
words suggesting that no delegation is truly effective is tremendously misleading. There are two key caveats to any fiduciary delegation: There must be prudent selection and monitoring; and the appointing fiduciary must avoid co-fiduciary liability. ERISA §405(a), the co-fiduciary liability provisions, shows that this is…
a blog, so I took the opportunity to share the three questions that I get asked the most when it comes to 3(16) fiduciary outsourcing. 1. Which Employers are a Good Fit for Full 3(16) Outsourcing? This question came up in a conversation with an…
…of the labor. The Separate Fiduciary (an Added Layer). An independent fiduciary is appointed as named fiduciary and/or 3(16) administrator as an added layer in the plan document and other governing documents and contracts. The fiduciary is not the TPA or recordkeeper but becomes the…
Fiduciary regulations continue to evolve, much to the exasperation of those who are not experts in the field but are still acting as fiduciaries for their company’s retirement plan. The Fiduciary Rule proposed by the Department of Labor (DOL) went through a number of permutations…
dive into how you can be a fiduciary outsourcing expert as we discuss fiduciary outsourcing trends…and how you can take advantage of it to grow your retirement practice. Fiduciary outsourcing trends Which employers are a good fit for 3(16) Fiduciary Outsourcing The 30-second sales opener”…
…that may result in lower plan costs. As an adopting employer in a MEP, what is your fiduciary role? One of the key benefits of participating in a multiple employer plan is fiduciary relief-as the MEP sponsor assumes principal fiduciary responsibilities associated with sponsoring a…
…the time and headaches associated with the correction. Outsourcing eliminates the problemThere is a simple solution—fiduciary outsourcing. Hiring a firm to serve as an institutional named fiduciary, trustee, and 3(16) administrator can solve the problems and ensure that you are addressing these many details of…