Despite the rapid evolution of the retirement industry, one challenge continues to surface among plan sponsors nationwide: persistent confusion surrounding fiduciary roles. Even though more than 90% of retirement plans work with an advisor, many sponsors still struggle to understand how that advisor is serving them. Are they operating as a broker? Are they acting in a fiduciary capacity? And if so, is that capacity under 3(21) — where responsibility is shared — or 3(38), where the advisor assumes full discretionary authority?
This lack of clarity can leave plan sponsors unsure of their obligations, their risks, and the level of oversight they must maintain. It’s a gap that continues to highlight the importance of independent, accessible education.
During a recent TPSU program held at Fordham Law School in New York City, TPSU and 401kTV Founder Fred Barstein spoke with Burak Alpaslan, adjunct lecturer and founding partner of Vital Planning Group, to unpack the themes that emerged from the day’s highly interactive session.
Alpaslan began by sharing an overview of his firm, which represents retirement plans in a fiduciary capacity from its office on 44th Street in Manhattan. From there, the discussion moved into one of the day’s biggest revelations: just how unclear many sponsors remain about the role of their advisor.
Although most plans are formally advised, many attendees admitted they did not know whether their advisor was functioning as a broker or a fiduciary — nor the difference between a 3(21) and 3(38) designation. The program helped clarify these distinctions and illustrated how each role shapes a sponsor’s responsibilities and liability.
Read the Full Transcript Here:
Fred:
Greetings. This is Fred Barstein, CEO and founder of TPSU and 401kTV, here on the beautiful campus of Fordham Law School in New York City, across from Lincoln Center. I’m here with our TPSU adjunct lecturer, Burak Alpaslan. Do I have that right?
Burak:
Yes, you do.
Fred:
Practice makes perfect — only took me the 100th time. Mind if we ask you a few questions?
Burak:
Of course.
Fred:
Before we begin, tell us a little bit about you and your firm.
Burak:
I’m one of the founders of Vital Planning Group. We represent retirement plans in a fiduciary capacity, and our office is located on 44th Street in New York City.
Fred:
Very good. There was a lot of discussion today — it was a very interactive group. Can you summarize a few things that were brought up?
Burak:
Absolutely. Several themes came up repeatedly. We heard the word fiduciary quite often. We also heard about plan complexities, the need for education, investment support, and finally, benchmarking.
Starting with fiduciary roles: many plan sponsors are not clear about what role their advisor plays. While more than 90% of plans are advised by a plan advisor, sponsors may not know whether the advisor is acting as a broker or a fiduciary — whether under 3(21) or 3(38). So clarification was needed there.
When it comes to benchmarking, it’s important to understand what exactly is being measured. Are you benchmarking the recordkeeper? The TPA? The fees? The services? Sponsors need clarity on what they’re evaluating.
One key point that came up was that advisors are supposed to help in all facets of the retirement plan — but the one thing they cannot and should not do is benchmark themselves. That’s where they need guidance from an independent resource, like TPSU and you, Fred.
Fred:
Absolutely — benchmarking advisors isn’t their role, and it can be overwhelming for sponsors.
Burak:
Absolutely.
Fred:
Thank you for being a lecturer — the momentum keeps going. Why do you think plan sponsors keep coming back to TPSU?
Burak:
We saw several people attending for their third or fourth time today, which was wonderful. I think the core reason is that there is no formal education for plan sponsors anywhere else. TPSU provides that education in a very agnostic, unbiased, arm’s-length way. Plan sponsors receive guidance they can trust, and that’s why they return.
Fred:
One attendee from a large plan told me, “I’m an English major. I thought this was going to be all code sections.” He said other trainings he’s attended were extremely complicated. But he said, “You explained everything in English. You kept it understandable.” That’s what plan sponsors really need.
Burak:
Absolutely.
Fred:
Well, thank you for being a lecturer.
Burak:
It is my pleasure and privilege. Thank you so much.
Fred:
And thank you for watching 401kTV. Please stay tuned.
