Employers that provide a retirement savings plan have a fiduciary responsibility to keep the plan in compliance with the Employee Retirement Income Security Act (ERISA). Plan sponsors unable to meet this requirement could be subject to costly fines and face possible litigation from participants.
The 3(16) services from the Red Bank, New Jersey, firm include oversight of the day-to-day retirement plan operations such as:
- Reasonableness of vendor compensation under ERISA Section 408(b)(2);
- Providing summary plan descriptions;
- Complying with participant disclosures under ERISA Sections 404(a)5 and 404(c);
- Approving plan qualified domestic relations orders (QDROs) and other distributions;
- Approving, signing and filing Internal Revenue Service Form 5500; and
- Other responsibilities.
“Employers provide a retirement plan to attract and retain top talent but find the ever increasing demands on the plan sponsor to be an administrative burden. As the compliance landscape continues to evolve, many plan sponsors and trustees realize that they are not able to meet their administrative obligations and want a firm who will do it for them,” says Michael M. Salerno, NPPG founder and CEO. “Our ERISA 3(16) fiduciary service can alleviate much of the strain on the plan sponsor’s internal resources enabling them to focus on company growth.”
Over the past several years, the pension industry has seen a rise in claims against plan sponsors from displeased participants, says Salerno, adding, “As the appointed 3(16) plan administrator we relieve the plan sponsor of certain financial liability. Plan sponsors can feel confident knowing that our fiduciary service enables their plan to be administered efficiently while minimizing its exposure to risk.”
Northeast Professional Planning Group (NPPG) is a provider of employee benefits, retirement planning and actuarial consulting services. More information is available at 732-758-1577 or atwww.northeastprofessional.com.