PLANSPONSOR - December/January 2021 - 31

A 3(16) Perspective
Putting Clients First
PS: What makes a plan sponsor
a good candidate for outsourcing
3(16) services?
As one of America's oldest independent
fiduciaries, we at Pentegra believe every
plan sponsor should have a 3(16) administrator.
We
were founded nearly 80 years ago
as an independent professional fiduciary.
Our heritage enables us to support plan
sponsors through a variety of retirement
plan solutions and a range of service levels,
for smaller plans up to some of the largest
plans in the country.
As a fiduciary, Pentegra assumes key
retirement plan responsibilities for the plan
sponsor. This helps reduce legal and administrative
burdens, minimize risk and lessen
workloads. That's peace of mind for every
plan sponsor and an added layer of protection.
Pentegra provides invaluable fiduciary
services that give plan sponsors more time
to run their business.
PS: What should a plan sponsor
evaluate or consider in selecting
a 3(16) provider?
The most important thing a plan sponsor
can ask is whether the prospective 3(16)
provider is an actual independent institutional
fiduciary. Consider the provider's
financial stability and longevity. Does it
have sufficient
fiduciary liability insurance?
Read the service agreement carefully to see
what responsibilities it is willing to assume.
A " true " 3(16) fiduciary administrator not
only does the work, but is responsible for
making sure that it's done right. It stands
in front of the client and assumes responsibility
and liability.
Pentegra always puts the clients'
interests
first. Consider whether
the
rules is another. An independent fiduciary
must always act in the best interests of the
plan and its participants.
Pentegra builds plan sponsor confidence
by knowing the inner workings of
client plans, and we are always looking to
save plan sponsors time and money. We
are skilled at finding and fixing plans with
sometimes
unforeseen-and expensive-
challenges. We apply a fiduciary perspective
to every client and plan we work with, and
that includes plans of every type-defined
contribution (DC) plans, defined benefit
(DB) plans, multiple employer plans (MEPs)
and pooled employer plans (PEPs).
Richard W. Rausser, CPC, QPA, QKA
Senior Vice President, Client Services
3(16) provider will serve as the Employee
Retirement Income Security Act (ERISA)
named fiduciary
in the plan document.
Will the provider sign and file the Form
5500? Will it work directly with the plan
auditors and respond to IRS and Department
of Labor (DOL) inquiries? As a full
fiduciary, Pentegra does all of this and more.
We offer plan sponsors the security that
comes from having an experienced professional
on board.
PS: What are the main differentiators
between 3(16) providers?
Many providers offer 3(16) services.
However, not every provider is an independent
fiduciary and not every fiduciary
is a full scope, full service fiduciary.
Knowing the rules is one component of
being a 3(16) fiduciary, but enforcing those
PS: How does a 3(16) fiduciary
help plan sponsors deliver better
plan outcomes?
Fiduciary
oversight
outcomes and reduces
improves
plan
liabilities. Retirement
plan administration is complex. It's
subject to legal
challenges. Outsourcing
fiduciary responsibility by engaging an independent
fiduciary helps plan sponsors design
a more effective plan that is compliant and
easy to administer. That's peace of mind.
With the increased focus on legal challenges
today, can plan sponsors really afford
not to have a professional by their side?
Often, the real value of a fiduciary is seen
when there is a plan issue or problem. As an
independent fiduciary, we monitor plans to
help ensure they don't have problems, and,
if they arise, we're the partner to help you
fix them.
We put participants and plan sponsors
first. ■
This material is intended for retirement plan sponsors and advisors and is being provided solely
for informational purposes. This material does not constitute financial, investment, tax, legal or
accounting advice on the matters addressed.
SPONSORED SECTION

PLANSPONSOR - December/January 2021

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