At FiduciaryxChange, we offer one of the most flexible and comprehensive solutions available in the marketplace, allowing us to take on as much of the risk and responsibility of sponsoring a retirement plan as ERISA allows.
To determine if outsourcing some or all fiduciary responsibility makes sense, FiduciaryxChange recommends considering the following questions:
Do you have the knowledge and expertise to maintain compliance and manage the retirement plan effectively?
Does the retirement plan provide adequate benefits to employees so they can retire with dignity?
Would it be a more effective use of administrative time to outsource the management and operational responsibilities of the plan to a team of professionals?
The various ERISA-established roles bear differing levels of risk and responsibilities. It is essential plan sponsors understand the capacities in which they may act on behalf of the plan beneficiaries at any given time. The amount of fiduciary liability incurred as a plan sponsor depends on the role as defined by ERISA.
The plan sponsor, in the role of plan administrator, bears the responsibility of fulfilling the following fiduciary responsibilities:
Delegated 3(16) Plan Administrator
- ERISA Section 3(16) Plan Administrator as named in the plan document
- Approve and sign the annual Form 5500
- Approve and sign all plan distributions, QDROs and loans
- Oversee the preparation and distribution of annual participant notices and disclosures
The services provided by FiduciaryxChange are structured to absorb as much of the ERISA Delegated 3(16) Plan Administrator away from the plan sponsor as is allowed by law.