Reassigning plan administrator risk
Retirement plan sponsors have day jobs–they are busy running their businesses. But at the end of the day, plan sponsors are fiduciaries. They are legally responsible for their plans. Most mistakes involve plan administration.
The right 3(16) Administrator can virtually eliminate the risk of failing to meet deadlines or doing things incorrectly, and assume these responsibilities for your clients.
Key Takeaways:
- [02:24] If we look at the typical qualified plan it is the client who is the plan sponsor or is assuming the role of the fiduciary for the client.
- [14:32] Taking on a 3(16) role is not only understanding the law, rules, and requirements but knowing what is in that specific plan document and then applying that to that client’s specific circumstance.
- [21:13] Determine if you want to retain all those functions, roles, and legal and financial responsibilities. Organizations big and small may be capable but it isn’t their day-to-day business so they don’t really want to focus on it and they want to outsource it.
- [22:56] So many times the new hires are not offered the opportunity timely. At the end of the day, if that error isn’t caught, that participant loses out on the ability to save money long-term for retirement.