ERISA 3(16) Fiduciary Services involve assuming responsibility for the day-to-day operations of a retirement plan to help reduce administrative burden and reduce personal liability risks for the Plan Sponsor (i.e. Employer). An ERISA Section 3(16) Plan Administrator competently navigates the complex fiduciary landscape and acts as a plan administrator to provide services such as:
- Review participant eligibility and Plan document compliance
- Verify accuracy, sign and file Form 5500
- Benchmark vendor fees and services
- Provide added fiduciary protection
3(16) Fiduciary Services and Why Employers Should Care
If the Plan Document does not state a named plan administrator, the employer/Plan Sponsor is, by default, the fiduciary responsible for overseeing the daily management of their plan. Many employers may not realize the responsibility that they have as a fiduciary to their plan and unknowingly put themselves at risk. A fiduciary who fails to follow certain standards of care may be personally liable for improper use of the plan’s assets requiring them to restore any losses to the plan that are a result of their actions.
ERISA 3(16) fiduciary services provide protection.
Employers can limit their liability and risk involved and reduce time and effort in managing their retirement plan by outsourcing the plan administrator role to a professional ERISA 3(16) Plan Administrator. Outsourcing the plan administrative duties allows business owners to focus on their company and its future growth with the peace of mind knowing these fiduciary processes are in professional care.
What Do 3(16) Fiduciary Services Cover?
A 3(16) Plan Administrator is the fiduciary that is subject to the ERISA standards of care and must act in the best interest of the retirement plan participants and their beneficiaries.
As trusted advisors, ERISA 3(16) Fiduciary Service providers give employers a comprehensive compliance solution they can rely on with the assurance that their retirement plan adheres to fiduciary standards.
Important 3(16) Fiduciary Services include, but are not limited to:
- Named as a Plan Administrator in the Plan Document
- Review, process, and monitor all 401(k) loans
- Review plan eligibility and document compliance for adherence of IRS/DOL regulations
- Provide added fiduciary protection
- Verify accuracy, sign and file Form 5500
- Review and verify non-discrimination compliance testing
- Determination of participant eligibility
- Accept legal process
Rooted in this belief, 3(16) fiduciary experts help manage the day-to-day operations of the plan. To ensure they reduce corporate and personal liability for fiduciary responsibilities, prudent business owners align themselves with a professional ERISA 3(16) Plan Administrator.
This allows business owners to focus on their business while leaving the administrative and compliance concerns of their retirement plan in the skilled hands of trusted advisors.
NPPG Fiduciary Services, LLC – Provides ERISA 3(16) Administrative Fiduciary Services
NPPG Fiduciary Services believes that plan sponsors should not have to shoulder the risky burden of potential compliance errors and heavy plan administration workloads in order to offer a retirement plan to their employees.
Let our trusted 3(16) fiduciary experts reduce the labor burden and fiduciary risk inherent in your retirement plan.
NPPG provides a full range of employee benefits planning services, retirement planning services, investment services, and actuarial consulting. For further information, contact Northeast Professional Planning Group, Inc. corporate office in Red Bank, NJ at (732) 758-1577.