Named 402/3(16) Fiduciary Services

fiduciary-wise-400dpilogoWhy Delegate to Fiduciary Wise

As a Plan Sponsor, you are ultimately responsible for running the day-to-day operations of your retirement plan — thus you are a fiduciary. One’s fiduciary status is based on functions performed and who has been selected to perform them. ERISA mandates that a fiduciary must put participants’ and beneficiaries interests first. 3(16) of ERISA lists the 150 or so duties necessary to run the day-to-day operations of your retirement plan each year.

The role of a Plan Sponsor is time consuming and includes your personal liability. One of the ways to minimize that liability is to hire Fiduciary Wise to serve as a fiduciary. Hiring us as your Named 402/3(16) fiduciary insulates you against making administrative errors that could be quite costly. Fiduciary Wise and Fiduciary Wise of the Midwest (a division of Billings and Company), have a checks and balances system in place to address all those duties, and annual governance report for easy tracking, and are backed by a $2,000,000 fiduciary insurance policy*.

*fiduciary insurance is separate and does not replace the ERISA requirement of a fidelity bond.

Sample Scope of Services
 Who Should Hire a Named 402/3(16) Fiduciary
  • Signing your 5500 Form, if filing is required
  • Issuing all required Participant Communications
  • Overseeing IRS & DOL Audits / Investigations
  • Identifying Plan Fiduciaries
  • Approving Benefit Distribution request
  • Evaluate “reasonableness” of expenses
  • Developing and monitoring and Investment Policy Statement (IPS)
  • Maintaining a Plan Document Retention File
  • Bylaws for a formal “Plan Administration”
  • Conducting bi-annual PAC (Plan Administration Committee) meetings with all stakeholders.  Then memorializing said meetings with audio recordings and written Minutes
  • Plan Sponsors who lack the time to ensure all administrative functions are carried out in a detailed and proper manner
  • Plan Sponsors who want to hire a provider willing to be a Named Fiduciary under ERISA
  • Plan Sponsors concerned about fiduciary liability
  • Plan Sponsors concerned with little or no ERISA expertise
  • Plan Sponsors looking for “peace-of-mind”
  • Plan Sponsors who operate with lean internal staffing
  • Plan Sponsors who would like to receive a comprehensive signed report each year that details who performed each required task

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