What is 3(16) Fiduciary Outsourcing?
What is 3(16) Fiduciary Outsourcing?
See how true fiduciary administrative services is the key to outsourcing the headaches associated with plan management.
Employer Work Load Before Adopting a SELECT RETIREMENT PLAN
- Overall operational compliance
- Document compliance, mandatory interim
amendments, restatements - Form 5500 review and filing
- Audit preparation
- New hire processing
- ERISA bond
- ACA (automatic enrollment administration)
- ACI (automatic contribution increases admin)
- Default investment administration
- Determination of vesting and amount of
distribution - ERISA section 105 employee benefit
statements - Benchmarking reasonableness of fees
- Prudent selection and monitoring of service
providers - Benefit determinations and disputes
- Administration of beneficiary rules
- Worker classification
- Non-discrimination testing
- Summary Annual Report (SAR)
- Definition of compensation
- Allocation of unallocated monies by plan
year-end - IRC section 72(p) loan administration
- Contribution calculations and limitations
- Protected benefits
- Acceptance or rejection of rollovers, transfers and hardships
- Annual notices distribution
- Investment change paperwork and notices
- Coverage testing and corrections
- Segregation of assets by source
- Involuntary distributions
- Episodic notices
- Distributions
- Hardship distributions
- Qualified Domestic Relations Orders
(QDRO) - Lost/missing participants and unclaimed
benefits - Grandfathered plan provisions
- Plan termination and partial termination
- Spousal consents
- QJSA and QPSA
- Summary Plan Descriptions and
Summaries of Material Modifications
(SPD and SMM) - Timely remission of deferrals and loan
repayments - Timeliness of other required contributions
- Diversification requirements for plans with
employer securities - Blackout procedures
- Defined benefit plan duties
- Participant fee disclosure (404a-5)
- Fiduciary fee disclosure (408b-2)
- Records retention under ERISA Sections
107 and 209 - Responding to participant inquiries
- Top-heavy minimum benefit
- Overpayments
- Personal liability under ERISA 409
Employer Work Load After Adopting a SELECT RETIREMENT PLAN:
- Timely remission of employee deferrals, loan repayments and employer contributions (can be outsourced to a payroll provider).
- Annual adviser meeting to review plan goals for your company.
- Schedule employee education meetings conducted by your plan adviser.