The fiduciary responsible for managing the day-to-day operations of your Health & Welfare or Qualified Retirement Plan is known as the 3(16) Plan Administrator under ERISA.

In most organizations, the Plan Sponsor typically takes on the role of Plan Administrator unless a separate fiduciary is appointed to handle these duties.

It’s important to understand that a Third Party Administrator (TPA) is not the same as a 3(16) Plan Administrator.

Your 3(16) Plan Administrator must be a knowledgeable and prudent expert in ERISA compliance, sharing personal liability for the plan alongside the Plan Sponsor.

Conversely, TPAs generally perform ministerial tasks and do not carry fiduciary responsibilities.

One major advantage of engaging an independent fiduciary as your 3(16) Plan Administrator is their ability to oversee all TPAs and subordinate fiduciaries, ensuring your plan operates smoothly and in full compliance.

3(16) Fiduciary Services

As the fiduciary responsible for your plan’s daily management, the ERISA Advisory Group provides the following services:

• Serve as the 3(16) Plan Administrator, taking on personal liability and handling day-to-day plan operations

• Monitor, evaluate, and replace service providers as needed

• Negotiate service agreements

• Prepare and file government documents, including Form 5500, M-1, and other required filings

• Review plan expenses

• Transmit ACA information to employers

• Maintain key documents like the Summary Plan Description (SPD), Summary of Benefits and Coverage (SBC), and Trust Agreements

• Act as agent for service to manage communications with agencies such as the IRS, Department of Labor, and other regulatory bodies

• Review and audit vendors

• Work to reduce fees and expenses

• Prepare annual fiduciary reports

• Distribute required participant notices

• Review applications for affiliate and employer group health plans

• Conduct financial audits of plan statements

• Oversee contributions to the plan

• Adjudicate claim disputes

• Determine participant eligibility

• Work with actuaries to establish contribution rates

• Maintain comprehensive plan records

• Ensure compliance with HIPAA regulations

Experience Stress-Free Planning & Compliance

As experts in Health & Welfare and Retirement Plan administration, we strive to design your ERISA plan strategically while maintaining full legal compliance.

Our mission is to relieve you of ERISA planning and compliance responsibilities so you can focus on running your business. Following the Department of Labor’s recommendation, outsource your administrative duties to trusted professionals like us.

If you’re considering appointing an independent fiduciary as your 3(16) Plan Administrator, schedule a free consultation to learn how we can assist you.