Vetting fiduciary service providers is one of the most important processes that a plan sponsor can implement. By appointing the right ERISA 3(16) plan administrator, you will increase the chances that your plan will be successful, help meet your company’s financial goals, attract and retain top talent and ensure plan compliance.
Choose the wrong partner and you could risk costly fines, audits, penalties and other legal consequences.
Looking for Reputable Fiduciary Service Providers? Ask These 4 Questions First
Don’t take any risks. If you’re unsure what to look for when you begin interviewing independent 3(16) fiduciary service providers, consider asking the following four questions.
1. What services do you provide?
Before you hire a fiduciary service provider, find out how much liability they are willing to absorb. A provider who contractually offers an extensive breadth of services to accommodate your unique goals and business size can help limit your exposure.
NPPG Fiduciary Services (NPPG-FS) provides a full suite of ERISA compliance services, including ERISA 3(16) Administrative Fiduciary services for large, mid-size and small corporations, governmental agencies, non-profit organizations as well as small entrepreneurial start-up businesses .
2. How much experience do you have?
Do your due diligence: Review your agreement. Ensure a comprehensive transfer of both administrative duties as well as liability. Inquire about the number of plans they manage and how many years of experience their team members possess. In addition, considering the ever-changing landscape of the industry; look for a provider who has a strong commitment to continued education.
Committed to advancing the company’s expertise in employee benefits, investments and pension knowledge, the highly qualified team of NPPG consultants regularly participate in professional education programs offered by the National Association of Health Underwriters, Academy of Actuaries, American Society of Pension Professionals & Actuaries and other professional organizations.
3. What are your processes and vision?
This is a critical question, since you will want to ensure that you are comfortable with the processes your fiduciary service provider has in place. Look for a 3(16) Plan Administrator that offers not only highly experienced personnel but also state-of-the-art technology ensuring a seamless process to mitigate risk, increase your plan effectiveness and reduce overall costs. It’s critical to vet fiduciary service providers who are driven by the best interests of their clients and are equipped to deliver innovative strategies to help you reach your financial goals.
NPPG operates as a trusted advisor for over 2,000 client plans nationwide as they navigate the complex regulatory setting inherent in today’s challenging retirement and healthcare environments.
4. What is the extent of covered liability?
Not all fiduciary services are the same. Don’t rely on 3(16) “like” fiduciary service providers, who operate base level services and do not provide liability reduction for the plan sponsor. Instead, look for a full-scope 3(16) fiduciary who is fully engaged to ensure complete compliance and accepts legal process.
As a full-scope 3(16) administrative fiduciary, NPPG takes on the responsibilities of the plan sponsor and minimizes liability exposure so the plan sponsor can focus on company growth.
Finding the Best Fiduciary Service Providers
Researching the best fiduciary service providers can be a complex process. As a plan sponsor, you want to ensure that you have hired someone who has the expertise and resources available to seamlessly manage all of your plan details, some of which include a review of all plan testing, review and signing the Form 5500, monitoring of fees and services, review and approval of all distributions.
At the end of the day, it’s about building a professional business relationship so you should approach the process as if you’re hiring someone for your own team by asking the above questions, to assist you in your due diligence.
NPPG: Your Trusted Full-Service Fiduciary Service Provider
Since 1997, NPPG has been one of the leading fiduciary service providers, helping plan sponsors, Financial Advisors, CPA’s, Recordkeepers and TPAs nationwide achieve better business performance and financial results. As a full-service, “one-stop solution,” NPPG provides comprehensive fiduciary services, including: ERISA 3(16) as well as health and welfare plan documentation.
If you’re unsure how to decide among the fiduciary service providers who are right for your company, we welcome the opportunity to discuss your needs. Give us a call at (732) 758-1577 to find out more.