Being a plan sponsor comes with a responsibility to fulfill certain fiduciary responsibilities when administering their retirement plan(s). Although some of these may be outsourced through a 3(16), 3(21) or 3(38) relationship with a service provider, this does not fully free the plan sponsor from meeting their fiduciary responsibilities. When services are outsourced, the plan sponsor should establish procedures to monitor the work of their service providers and review the fees paid from the plan for reasonableness. In addition, plan sponsors should form an oversight committee that meets on a regular basis to review and discuss their retirement plan(s). These discussions should be documented in the form of meeting minutes that are maintained in the company records. Maintaining proper consistent oversight is important in meeting the plan sponsor’s fiduciary responsibilities. 

For more information regarding plan oversight, please visit the following:

• Meeting your Fiduciary Responsibilities – DOL –https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/meeting-your-fiduciary-responsibilities.pdf
• Selecting & Monitoring Pension Consultants – DOL – https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/fact-sheets/selecting-and-monitoring-pension-consultants.pdf
• Selecting & Monitoring Service Providers – DOL – https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/fact-sheets/tips-for-selecting-and-monitoring-service-providers.pdf
• For additional DOL publications, please visit: https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/retirement