Understanding Fiduciary Roles
If you’re like most plan sponsors, successfully managing a retirement plan can feel like a tall order, especially when regulatory changes keep you on your toes. While fiduciary responsibilities are important, you may find yourself struggling to balance the many other competing demands of your role outside managing your retirement plan.
Did you know that you can decide how much investment responsibility you want to take on yourself?
Technically there are several definitions for types of fiduciaries under the Employee Retirement Income Security Act (ERISA). Knowing what these types of fiduciaries are may help you figure out what level of investment selection and monitoring responsibility you are comfortable with, and if you would like to transfer liability to an investment manager.
A 3(38) arrangement represents the highest level of investment liability transfer possible under ERISA. ERISA views the liability for investment selection as residing with the investment manager. While this does not completely absolve the plan sponsor, liability is defined much more narrowly. ERISA 405(d) provides that under a 3(38) arrangement, “the plan sponsor and/or trustees of the plan are not liable for acts or omissions of the 3(38) investment manager, and are under no obligation to invest or otherwise manage any asset of the plan which is subject to management of that investment manager.”
Click here for a white paper on navigating investment responsibilities.
Freedom401k® represents a “Have it Done For You” approach. By hiring CAPTRUST to act as your plan’s investment manager, plan sponsors can spend less time and energy on plan investments, and more time providing participants with resources to help them take advantage of and contribute to the plan.
At Your Fingertips
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