Richard W. Rausser has more than 30 years of experience in the retirement benefits industry. He is Senior Vice President of Thought Leadership at Pentegra, a leading provider of retirement plans and fiduciary outsourcing to organizations nationwide. He holds an M.B.A. in Finance from Fairleigh Dickinson University and a B.A. in Economics and Business Administration from Ursinus College. is important to note that a plan sponsor may never fully eliminate its fiduciary oversight responsibilities for the plan and remains “on the hook” for the prudent selection and monitoring of the 3(16) plan administrators. There are lots of organizations out there that offer outsourced 3(16) fiduciary services (e.g., TPAs, trust companies, RIAs, etc.). The process of selecting a 3(16) outsourced solution must be carried out in a prudent manner and solely in the interest of the plan participants. The DOL requires the plan sponsor to engage in an objective process designed to elicit information necessary to evaluate candidates considering, but not limited to, the following: • Qualifications of the service provider; • Whether it has a consistent track record of service; • Its professional “bench-strength” and tenure of staff; • The quality of services provided; and • Reasonableness of the provider’s fees in light of the services provided. In addition, such a process should be designed to avoid self-dealing, conflicts of interest or other improper influence. In the delicate area of plan administration, it’s prudent to go with an experienced professional. Pentegra is a “fiduciary first” and has been for over 75 years. Pentegra’s 3(16) Fiduciary Solutions are comprehensive, proven and flexible. Pub. 13 2022 I Issue 2 Summer 31 West Virginia Banker
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