Fiduciary Support. Clarity. Confidence.
What is an ERISA Fiduciary Compliance Overview?
Did you know the Employee Benefits Security Administration (EBSA), a division of the U.S. Department of Labor, oversees the enforcement, regulation, and monitoring of Title I of ERISA?
In fiscal year 2023, EBSA secured $1.4 billion in recoveries from employers who failed to comply with ERISA guidelines. The agency also closed 196 criminal cases and obtained indictments against 60 individuals for benefit-related violations.
When the Department of Labor examines ERISA Health & Welfare or Retirement Plans, it follows a structured process to identify areas of non-compliance. Performing a proactive ERISA Fiduciary Compliance Review lets you align with their audit methods—helping you uncover and fix potential problems before they lead to serious penalties or legal risk.
What does a 3(16) Plan Administrator do?
The fiduciary responsible for managing the daily operations of your Health & Welfare or Qualified Retirement Plan is known as a 3(16) Plan Administrator under ERISA.
In most organizations, the Plan Sponsor usually serves as the Plan Administrator—unless another fiduciary is formally appointed to take over the role.
Your TPA is NOT a Plan Administrator
It’s essential to understand that Third Party Administrators (TPAs) are not the same as a 3(16) Plan Administrator.
Your 3(16) fiduciary must be an ERISA compliance expert and shares personal fiduciary responsibility with the Plan Sponsor.
By contrast, a TPA typically handles routine administrative tasks for the plan and does not assume any fiduciary role.
The major advantage of hiring a separate fiduciary to act as your 3(16) Plan Administrator is that they supervise all TPAs and lower-level fiduciaries to ensure smooth and compliant plan operation.
3(16) Fiduciary Services
As the party responsible for day-to-day plan management under ERISA, the ERISA Advisory Group provides the following services:
Serve as 3(16) Plan Administrator, taking on personal liability and full operational oversight
Oversee, assess, and replace service providers
Negotiate all service agreements
Complete and file all required government forms (e.g., Form 5500, M-1)
Analyze and review plan-related expenses
Handle ACA reporting for employers
Maintain SPD, SBC, and Trust Agreements
Act as the agent for service, handling communications with the IRS, DOL, and other agencies
Audit and review vendors
Lower fees and operating costs
Compile the Annual Fiduciary Report
Manage distribution of participant notices
Review affiliate and employer applications to group health plans
Conduct audits of the plan’s financials
Ensure plan contributions are properly made
Resolve claim disputes
Determine participant eligibility
Work with actuaries to set contribution rates
Maintain accurate plan records
Ensure HIPAA compliance is maintained
Enjoy Hands-Off Compliance and Plan Oversight
As experienced experts in both Health & Welfare and Retirement Plan administration, we ensure your ERISA plan is built for success and fully compliant with the law.
Our mission is to take ERISA compliance off your plate, so you can focus on running your business. Following the Department of Labor’s recommendations, we offer you the option to delegate your administrative responsibilities to us.
If you’re ready to work with a professional 3(16) Plan Administrator, schedule a free consultation today to see how we can support your needs.
The Key Fiduciaries in Retirement Plans
ERISA Section 402(a) Named Fiduciary
A 402(a) Named Fiduciary is designated in the plan document as having the overall authority to control and manage the operation and administration of the plan. Most commonly, the Named Fiduciary is the ERISA section 3(16) Administrator.
ERISA Section 3(16) Administrator
A 3(16) Administrator is the person or entity “so designated” in the plan document. The employer is the default Plan Administrator if none is designated. The Plan Administrator is basically responsible for any fiduciary responsibility not assumed by the ERISA section 403(a) Trustee.
ERISA Section 3(38) Investment Fiduciary
A 3(38) Investment Manager is a codified investment fiduciary on a retirement plan as defined by ERISA section 3(38). The name of this particular fiduciary makes it easy to guess its role. Essentially, the 3(38) is responsible for selecting, managing, monitoring, and benchmarking the plan’s investment offerings. In some plans, but not in participant-directed plans, a 3(38) also has discretionary authority to direct funds’ investment. Below is a more detailed list of those responsibilities.
ERISA Section 403(a)(1) “Directed Trustee”
Phone: 361-271-1211
Email:service@admin316.com
Address: 5875 Daylilly Trail, Springdale, AR 72764
Hours: Monday – Friday, 8:00 AM –5:00 PM CST