We are the best solution for overseeing your plan’s administration and saving time all the while reducing fiduciary liability.
Plan Administrators are tasked with various fiduciary duties as defined under ERISA Section 3(16). However, most individuals appointed to handle the day- to-day operations associated with the company’s retirement plan are not always aware of their fiduciary responsibilities, and most administrative mistakes on a plan are a result of an oversight by the 3(16) Plan Administrator. The sanctions and penalties can be significant.
Anchor 3(16) performs tasks in conjunction with the TPA, financial advisor, payroll provider, and investment platform for seamless operation of the plan. Through this arrangement, plan sponsors can reduce their fiduciary liabilities while enjoying greatly increased time to focus on growing and maintaining their business.
Why Sponsors Should Engage Anchor 3(16)
Who is a 3(16) Administrator?
Anyone can act as a 3(16) administrator on an employer sponsored retirement plan. Under ERISA, a plan fiduciary is defined as an individual who has discretionary authority or responsibility for plan administration. Every plan must have a person who serves as its administrator for ERISA purposes, and this person is required to fulfill certain reporting and disclosure obligations. Some of these fiduciary duties include signing the Form 5500, providing the SPD and enrollment materials, verifying and approving loans and distributions, and timely funding employee 401(k) salary deferral contributions. Further, plan administrators are subject to sanctions applicable to failure to accomplish these reporting and disclosure duties.
Anchor 3(16) offers a variety of “pre-packaged” service models as well as a la carte options tailored to meet the specific needs of each individual client. Pricing can similarly be customized for your specific needs.
Engaging specialized service providers to handle administrative tasks helps to limit the fiduciary responsibilities of plan sponsors, saves time, and ensures that the plan is receiving high ranking “five star” service.