Let Madison Pension Services manage and lessen the daily administrative and fiduciary responsibilities of your plan, allowing you to focus on other aspects of your business.
With over 40 years of experience servicing the needs of our clients, it is deeply embedded in our culture to provide exceptional customer service. Part of that service is a commitment to stand side by side with our clients as a fiduciary under the plan.
What is a 3(16) Plan Administrator?
The 3(16) administrator is responsible for managing the day to day operations of the plan. The duties of the Plan Administrator are set by ERISA and the terms of the plan document.
What are some of the responsibilities that may be assigned to your 3(16) Plan Administrator?
- To act as named fiduciary under ERISA
- To determine eligibility of employees to participate in the plan
- To maintain all necessary records
- To interpret the plan and published rules and regulations
- To sign and file annual government forms: 5500/8955-SSA
- To obtain Fidelity bond for the plan
- To distribute participant notices
- To approve plan loans and distributions
- To interface with participants regarding plan questions
- To submit and/or review payroll contributions to ensure timely deposits.
What are the benefits to using a 3(16) Plan Administrator?
- Time savings
- Increased internal human resources capacity
- Reduced liability
- Reduced audit risk
- Fiduciary protection that you can count on
Why are these responsibilities so important?
A governmental audit is more common than you might think. Each year the Internal Revenue Service (IRS), and especially the Department of Labor (DOL), conduct audits and assess penalties to plan administrators that have run into the millions of dollars for failure to properly administer their retirement plan. Furthermore, we estimate that our 3(16) services could free up an additional 5-10 hours of productivity for your staff.