3(16) Fiduciary Services Gaining Interest Among Retirement Plan Sponsors
3(16) Fiduciary Services are gaining interest among retirement Plan Sponsors who desire to offload some of the work from their retirement plan. Recently Darren Holsey, Owner of Premier Retirement Plan Services and Board Member of the National Institute of Pension Administrators (NIPA) spoke with Fred Barstein, Founder and CEO of 401kTV to discuss professional 3(16) fiduciary services. Watch this video to see how professional 3(16) fiduciary services can assist a plan sponsor with payroll integration, where to invest and identifying plan trustees; and learn why a Third Party Administrator (TPA) is the first person with whom you should speak.
Full Transcript Here
Well a lot of plan sponsors are trying to outsource some of that responsibility, simplifying their lives taking away from that extra time they have to spend on their retirement plans.
That’s right. They don’t love spending time on their retirement plan.
Oh, no.
And who can blame them? Let’s talk about some of the things that you’re seeing as a 3(16) that really simplifies everything.
Well one of the big things that a lot of people have gone to is payroll integration.
Right.
Working with the payroll provider directly with their investment provider so that some of the services that would normally have to be taken on by the … or some of the responsibilities that would have to be taken on by the sponsor can be offloaded onto another party.
Right and payroll integration is important for automatic enrollment. Why?
Well automatic enrollment requires a lot more attention to detail with as far as notices go, as far as getting people enrolled timely so you don’t have issues and compliance problems. If that information can be tracked by the investment company, then that saves a lot of time from the sponsor’s standpoint.
Right and so let’s talk a little bit about if a plan sponsor wants to do it who should they be talking to?
Well honestly the first person you want to talk to is your TPA. The TPA is already intimately involved in some of the 3(16) services that you hae to do and they would be able to provide some expertise on who can help them get either payroll integration or since your offloading some of those 3(16) services that they don’t want to handle.
Because they’re overseeing all the other providers, right?
Yeah, absolutely.
You know if your record keeper says, “Oh, I could be your 3(16).” Whose going to oversee the record keeper?
Yes.
Right. Well great. Well thanks for your time today.
Yeah, thank you.
And, also, I forgot to mention Darren is a board member for NIPA so thanks for your support of 401kTV.
Yes.
Thank you for watching.
