I bet you have never heard of a 3(16) fiduciary. You might have heard of a 3(38) investment manager.
Both 3(38) and 3(16) service providers allow retirement plan sponsors to outsource a portion of their fiduciary responsibilities. Want to outsource the selection of your fund line-up? Choose a 3(38) investment manager. Want to offload some of your responsibility for administration, hire a 3(16) administrator. Though available for years, many small plan sponsors do not choose fiduciary outsourcing. Why? It can be relatively expensive.
In 2015, we introduced a Multiple Employer 401k, powered by Pentegra, that bundles 3(38) and 3(16) services into the core package. By joining forces with other plans, you can gain access to fiduciary outsourcing, institutional share classes and other “large” plan features at an affordable price point.
At Six8 Advisors, we not only focus on retirement plans, we focus on small to mid-sized plans just like yours. Ask us our Multiple Employer 401k options.
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