"Even the most diligent employers are often ill-equipped to deal with the regulatory complexities of qualified retirement plans because they lack the internal resources to execute their fiduciary responsibilities."

Source: Fred Reish and Bruce Ashton, Partners with Drinker, Biddle & Reath, LLP. Recognized as two of the leading ERISA attorneys in the U.S

Why Hire a ERISA 3(16)?

The EJReynolds Administrative Solutions for Employers Program "EASE" Program

According to the Internal Revenue Services (IRS), the majority of plan violations seen on audit involve the administrative functions of the named Fiduciaries. There has never been more regulatory pressure than there is today for employers to properly address fiduciary responsibilities and proper plan administration. Increased regulatory compliance and audit risk in recent years are creating significant complexity for employers

Don't believe things have changed?
Consider the following:

• 2008 - U.S. Supreme Court changed the legal basis for litigating 401(k) plans, allowing individuals to seek damages against plan sponsors.
• 2009 - The Department of Labor added 1,000 audit enforcement agents, a nearly 10-fold increase in the number of agents auditing 401(k) retirement plans.
• 2010 - DOL's enforcement division created the Contributory Plans Criminal Project (CPCP), which is the agency's first national criminal enforcement project.
• 2012 - The fee disclosure rules, also know as the 408(b)(2) regulations, took effect requiring Plan Sponsors to take a more active oversight role of plan fees and expenses.

At EJReynolds, we take on much of the responsibility for you as part of our normal engagement.

The Plan Administrator, as defined in ERISA Section 3(16), is responsible for many of the day-to-day functions of the plan. Some such functions would be to ensure all required filings with the federal government are made in a timely manner and the administration of loans and distributions.

EJReynolds Traditional Administrative Services

EJReynolds, in the capacity of Third Party Administrator, will normally perform certain ministerial functions for the plan that are not considered fiduciary duties:

  • Prepare Plan Documents and Amendments to be signed by the Plan Sponsor in a timely manner, as well as assist in the interpretation of the Plan Document in terms of eligibility, vesting and contributions
  • Prepare Annual Participant Notices, including:
  • Participant fee disclosure initial/annual notice
  • Safe Harbor Notice, if applicable
  • Default Investment Notice (QDIA)
  • Default Enrollment Notice, if applicable
  • Prepare ADP and ACP Testing, Top-heavy and Coverage Testing for the Plan Fiduciaries
  • Approve loans and distributions in accordance with the rules of the Plan Document and develop internal procedures for monitoring and evaluating requests
  • Submit Payroll data, once received, to the Custodian and coordinate funds transfer
  • Prepare Form 5500 for Plan Sponsor signature and coordinate electronic submission of all required forms and attachments.

Plan Sponsors may engage EJReynolds in a more advanced capacity if they feel uncomfortable in taking on the liability of performing these functions, or do not have sufficient staff or whose expertise falls outside of ERISA principles. EJReynolds provides the strength and commitment of an independent organization with more than 30 years of experience servicing retirement Plan Sponsors and their Participants.

EJReynolds Administrative Solutions for Employers (EASE) Program

For Plan Sponsors who would prefer a more “hands off” approach, the EASE Program allows us to perform our normal duties as well as many functions that would traditionally be the Sponsor’s responsibility, including:

  • Determination of plan eligibility, and ensuring all eligible participants are properly enrolled
  • Maintenance and management of Participant Election and Designation of Beneficiary Forms
  • Coordination of all required Participant Notices, including mailing and electronic distribution, where appropriate, including:
  • Summary Plan Description upon eligibility
  • Participant fee disclosure initial/annual notice
  • Safe Harbor Notice, if applicable
  • Default Investment Notice (QDIA)
  • Default Enrollment Notice, if applicable
  • Sarbanes Oxley Blackout Notice, if applicable
  • Distribution administration, including forcing out minimal balances where applicable and coordination of required tax notices
  • Coordination of Payroll data and submission, including ensuring the timeliness of deposits
  • Form 5500 preparation, review, signature and submission

For more information ERISA 3(16) Services (EASE) Contact us today