Outsourcing to professional fiduciaries can help plan sponsors limit liability for investment selection, plan administration and other key plan duties. The key to outsourcing is to understand what duties a plan sponsor is comfortable keeping in-house and what duties can and should be transitioned to a professional fiduciary. While outsourcing can limit plan sponsor liability, it does come with a cost. Some fiduciary services may have additional fees and outsourcing certainly requires that plan sponsors give up some control over certain aress of their plan.
For more about Fiduciary Outsourcing, check out the following Six8 blog posts
“Roadtripping with 401k Investment Fiduciaries”
“401(k) Administrative Outsourcing”
The Six8 Approach: We review Fiduciary Outsourcing options with each and every client. In many situations plan sponsors willingly choose to reduce their liability and improve plan oversight, by outsourcing to professionals. If a plan sponsor does not have the staff, resources or expertise to adequately monitor and manage plan administration and investments, then we suggest that the employer consider outsourcing. Our team works with each plan sponsor to understand the pros and cons of outsourcing, to develop an outsourcing strategy, and to evaluate and select the appropriate outsourcing providers.