Recently, 3(16) Fiduciary Services became more popular among Plan Sponsors, who want to offload some of the work from their pension plan. In a recent conversation between Fred Barstein, founder and CEO of 401kTV and Darren Holsey, owner of Premier Retirement Plan Services, the following topics were raised:
- Too many plan sponsors are looking for ways to outsource their responsibility, and one of such ways is payroll integration. It is an important factor in automatic enrollment, because typically the process takes a lot of time and effort, while automatic enrollment makes it faster and easier.
- The first person a plan sponsor should be contacting with is his TPA, as TPA’s are already involved in some of the 3(16) services, and will be able to help get payroll integration.
- If your record keeper says that he could be your 3(16), please note that there’s no one to oversee their work, that is why TPA’s are important as they’re overseeing all the other providers.
Watch the entire video: 3(16) Fiduciary Services Gaining Interest among Retirement Plan Sponsors