Outsourced Fiduciary Soup: 3(16), 3(21), 3(38) and Me
Employers have a fiduciary obligation to their employees when they offer retirement plans and benefits. The Employee Retirement Income Security Act (ERISA) imposes an extremely high regulatory burden, establishing significant organizational as well as personal fiduciary responsibilities on employers. The retirement plan marketplace offers numerous outsourced fiduciary services and models to reduce and manage that burden. What are 3(16), 3(21), and 3(38) fiduciaries? What are the benefits and risks of hiring an outsourced fiduciary? This session will review fiduciary responsibilities and obligations under ERISA, define the various outsourced models, and review the ongoing obligations employers have even when they use an outsourced fiduciary.
Learning Objectives:
- Understand the employer’s fiduciary obligations under ERISA.
- Define who is an ERISA fiduciary.
- Learn what responsibilities can be outsourced and what cannot be outsourced.
- Compare the various outsourced fiduciary models available in the marketplace today.
- Learn to manage the roles and responsibilities of the committee, recordkeeper, administrator, trustee, and advisors.
Kevin Mahoney, CIMA
As founder of Corporate Advisors Group, Kevin Mahoney joined Raymond James as a Managing Director, Investments and Senior Institutional Consultant in 2015. Kevin brings over 25 years’ experience in the financial services industry. His areas of expertise include fiduciary risk management, ERISA issues, qualified and non-qualified retirement plans, liability driven investing, philanthropic services, employee education and communication.
Kevin led the launch of SHRM 401(k) Solutions by Raymond James. SHRM 401(k) Solutions by Raymond James offers fiduciary investment advisory services to SHRM’s ecosystem. We help employees make meaningful progress towards their financial goals and employers meet their fiduciary responsibilities.