Fiduciary Support. Clarity. Confidence.

What is an ERISA Fiduciary Compliance Overview?

Did you know that the Employee Benefits Security Administration (EBSA), a division of the Department of Labor, is responsible for overseeing, regulating, and enforcing Title I of ERISA?

In FY 2023, EBSA:
- Recovered $1.4 billion from employers who failed to comply with ERISA Fiduciary Compliance regulations
- Closed 196 criminal cases
- Secured 60 indictments related to employee benefits violations

When the Department of Labor conducts audits on ERISA Health & Welfare Plans or Retirement Plans, they follow a structured process to uncover compliance issues.

By taking a proactive approach, you can:

Perform an ERISA Fiduciary Compliance Overview
Align your practices with DOL audit procedures
Identify and resolve potential issues before they result in penalties or fines

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Identify Problems With Your Plan & Start Taking Corrective Action Now.

What does a 3(16) Plan Administrator do?

The fiduciary tasked with the daily oversight of your Health & Welfare or Qualified Retirement Plan is known as the 3(16) Plan Administrator under ERISA.

In most organizations, the Plan Sponsor usually serves as the Plan Administrator unless another fiduciary is specifically appointed.

Your TPA Is Not a Plan Administrator

It’s vital to recognize that Third Party Administrators (TPAs) are not equivalent to 3(16) Plan Administrators.

A 3(16) Plan Administrator must be a knowledgeable ERISA Fiduciary Compliance professional and assumes personal responsibility for the plan alongside the Plan Sponsor.
Meanwhile, TPAs generally carry out “ministerial duties” related to the plan and do not accept fiduciary liability.

Key Benefit:

Hiring an independent fiduciary as your 3(16) Plan Administrator ensures oversight of TPAs and lower-tier fiduciaries, keeping the plan running smoothly and in compliance.

3(16) Fiduciary Services

As the fiduciary overseeing the daily operations and administration of your plan, the ERISA Fiduciary Compliance Advisory Group offers the following services:

Serve as the 3(16) Plan Administrator – accepting personal liability and overseeing daily management of the Plan
Oversee, Assess, and Replace Service Providers
Negotiate Provider Agreements
Complete and File Government Forms – including:
- Form 5500
- M-1
- Other applicable filings
Evaluate Plan Costs
Submit ACA Reports to Employers
Maintain Plan Documents, such as:
- Summary Plan Descriptions (SPD)
- Summary of Benefits and Coverage (SBC)
- Trust Agreements
Act as Agent for Service – managing communication with:
- IRS
- Department of Labor
- Other federal/state agencies
Vendor Reviews and Audits
Reduce Administrative Costs and Fees
Generate the Annual Fiduciary Report
Send Required Notices to Participants
Review Employer and Affiliate Applications to join Group Health Plans
Perform Financial Audits of Plan Accounts
Monitor and Verify Contributions to the Plan
Settle Claim Disputes
Verify Participant Eligibility
Collaborate with Actuaries to determine contribution rates
Maintain Accurate Plan Documentation
Ensure HIPAA Compliance

Simplify Compliance and Administration

As skilled professionals in Health & Welfare and Retirement Plan management, we help ensure your ERISA Fiduciary Compliance plan is both compliant and strategically built.

Our objective is to relieve you of the burden of ERISA Fiduciary Compliance and administration, so you can focus more on your core business.

Follow DOL’s guidance and delegate your administrative duties to us.

Ready to Get Started?

If you’re looking to hire an independent ERISA fiduciary compliance as your 3(16) Plan Administrator, book a complimentary consultation to learn how we can assist.

The Key Fiduciaries in Retirement Plans

ERISA Section 402(a) Named Fiduciary

A 402(a) Named Fiduciary is designated in the plan document as having the overall authority to control and manage the operation and administration of the plan. Most commonly, the Named Fiduciary is the ERISA Fiduciary Compliance section 3(16) Administrator.

ERISA Section 3(16) Administrator

A 3(16) Administrator is the person or entity “so designated” in the plan document. The employer is the default Plan Administrator if none is designated. The Plan Administrator is basically responsible for any fiduciary responsibility not assumed by the ERISA section 403(a) Trustee.

ERISA Section 3(38) Investment Fiduciary

A 3(38) Investment Manager is a codified investment fiduciary on a retirement plan as defined by ERISA section 3(38). The name of this particular fiduciary makes it easy to guess its role. Essentially, the 3(38) is responsible for selecting, managing, monitoring, and benchmarking the plan’s investment offerings. In some plans, but not in participant-directed plans, a 3(38) also has discretionary authority to direct funds’ investment. Below is a more detailed list of those responsibilities.

ERISA Section 403(a)(1) “Directed Trustee”