Fiduciary Services
3(21) Fiduciary - We will serve as 3(21) fiduciary to plan:
- Investment Review
- Assist with selection of plan fund lineup
- Assist with drafting of investment policy statement
- Conduct ongoing review of funds in conjunction with the fiduciary to assure that the funds continue to be appropriate for an employer retirement plan
- Fee review
- Annual fee and expense review of current plan
- Review plan documents and provider service agreements
- Review Fee disclosure both to plan and to participants
- Benchmark plan design and costs
- Assistance with fee negotiations
The four key responsibilities of a fiduciary:
Serve as a advocate – The exclusive benefit rule “a fiduciary must discharge his or her duties for the exclusive benefit of plan participants and their beneficiaries; and for the purpose of defraying the expenses of administering the plan.”
Be a prudent “professional” – The prudent man rule “a fiduciary must act with care, skill, and diligence that would be exercised by a reasonably prudent person who is familiar with such matters.”
Diversify against risk – The diversification requirement “a fiduciary must provide diversified investments so as to minimize the risk of large losses.”
Govern according to plan policy “a fiduciary has a duty to act in accordance with plan documents, ERISA and the DOL.”