ERISA Fiduciary Services

Four Components Of A Workplace Retirement Plan

Investment Fiduciary
Responsible for Investment Selection
Provided by FPLCM

Third-Party Administrator
Responsible for Plan Administration & Form Filings
Provided by Farmer & Betts (or TPA of your choice)

Recordkeeper
Responsible for Managing & Tracking Plan Participant Activities
Provided by Vanguard

Custodian
Responsible for Custodying Plan Assets
Provided by Ascensus

FPLCM, can act as your Plan’s ERISA 3(38) or ERISA 3(21) Investment Fiduciary. When operating under ERISA 3(38) Investment Manager Fiduciary capacity, we will have discretionary authority over the investment selection for the Plan. This includes:

Create and maintain Investment Policy Statement
Design and maintain investment selection
Design and maintain asset allocation models
Provide investment advice to plan participants

Schedule a Meeting

ERISA 3(38) vs ERISA 3(21)

ERISA 3(38) Fiduciary is the Investment Manager for your Plan. ERISA 3(21) Fiduciary is the Investment Advisor for your Plan.

An ERISA 3(21) Fiduciary’s responsibility is to provide investment advice, and the final decision regarding the investment selection is the Plan Sponsor’s responsibility.
An ERISA 3(21) Fiduciary is a good option for Plan Sponsors who are okay with sharing fiduciary responsibilities.
An ERISA 3(21) Fiduciary will typically draft an Investment Policy Statement. Based on the IPS, investment advisor will monitor investments and recommend changes if needed.

	ERISA 3(38)	ERISA 3(21)
Role	Investment Manager	Investment Advisor
Risk Protection	High	Moderate
Fiduciary Responsibility	Advisor	Plan Sponsor
Investment Lineup	Advisor Makes Investment Decisions	Plan Sponsor Makes Investment Decisions
Monitoring	Yes	Yes
Research & Analysis	Yes	Yes
Co-Fiduciary Meetings	Yes	Yes

Recordkeeping services will be provided Vanguard Retirement Plan Access™ (VRPA). VRPA is one of the industry leaders in Recordkeeping for qualified retirement plans. Unlike most other Recordkeeper platforms, VRPA uses a flat participant fee model without any assets under management fees.

Third-Party Administrator services will be provided by Farmer & Betts. They currently support over 2,500 qualified retirement plans throughout the nation. However, plans do have the option of selecting their own TPA.

Custodial services will be provided by Ascensus, one of the largest custodians in the nation with over $748 billion in assets and winner of multiple Best-in-Class awards over the last several years.

WHAT YOU NEED TO KNOW AS A PLAN SPONSOR FIDUCIARY

BENEFITS OF USING A CEFEX CERTIFIED ADVISOR