PLANADVISER - May/June 2021 - 16
trends
Hidden Positives
A 3(38) fiduciary can benefit retirement plans in more ways than the obvious
JEFF GRATTON, managing director and chief marketing
officer at SageView Advisory Group, has found that his
clients want to rely on a 3(38) fiduciary so they have more
time to concentrate on running their business. Indeed, it
does appear that plan sponsors increasingly use the services
of 3(38) fiduciaries to offload the work of selecting and monitoring
plan investments. The 2020 PLANSPONSOR Defined
Contribution (DC) Survey found, in fact, that 40% of plans
work with such an adviser.
" Turning to a 3(38) is a way for plan sponsors to reduce
some of their risks in terms of fiduciary duties, " notes
George Michael Gerstein, ERISA [Employee Retirement
Income Security Act] counsel and co-chair of the fiduciary
governance group at Stradley Ronon. " Relying on a 3(38)
investment manager who can make discretionary decisions
on investment lineups is appealing, due to the widespread
class action lawsuits against retirement plans that we've
seen, " he says. " There's [growing] understanding among the
plan sponsor community about this benefit of using a 3(38).
This could be very appealing to those sponsors that don't
feel they have the investment expertise. "
Many retirement plan advisers are figuring out how
to integrate 3(38) services into client offerings, whether
" Turning to a 3(38) is a way
for plan sponsors to reduce
some of their risks in terms
of fiduciary duties. "
in-house or working with a third party, which enables them
to focus more strategically with the sponsor on plan design
and retirement readiness, industry insiders say.
" We specialize in conducting searches for advisers to
subcontract 3(38) services [for our plan sponsor clients], " says
Jim Scheinberg, founder and chief investment officer (CIO) at
North Pier Search Consulting. " We follow up a year or two
later and inevitably discover the committee has been freed
up to focus on more tactical issues that affect participant
outcomes-key elements such as plan design, participation
and participant education. Before, committees would spend a
finite amount of time on these critical factors, which actually
move the needle in terms of outcomes and preparedness. "
Still, cautions Michael Goss, managing partner at Fiducient
Advisors, it is incumbent on the adviser to steer his
16 | planadviser.com May-June 2021 Art by Veronica Cerri
http://www.planadviser.com
PLANADVISER - May/June 2021
Table of Contents for the Digital Edition of PLANADVISER - May/June 2021
Publisher’s Note
Compliance News
Data Points
Trends
Eyes On The Investment Menu
2021 PLANADVISER DCIO Survey: The State Of DCIO
The Promise Of Sustainable Investing
Wealth Transfers On The Horizon
Rollovers And Fiduciaries
Caution Needed Regarding Rollovers
Advisers Giving Back
PLANADVISER - May/June 2021 - Cover1
PLANADVISER - May/June 2021 - Cover2
PLANADVISER - May/June 2021 - 1
PLANADVISER - May/June 2021 - Publisher’s Note
PLANADVISER - May/June 2021 - 3
PLANADVISER - May/June 2021 - Compliance News
PLANADVISER - May/June 2021 - 5
PLANADVISER - May/June 2021 - 6
PLANADVISER - May/June 2021 - 7
PLANADVISER - May/June 2021 - Data Points
PLANADVISER - May/June 2021 - 9
PLANADVISER - May/June 2021 - Trends
PLANADVISER - May/June 2021 - 11
PLANADVISER - May/June 2021 - 12
PLANADVISER - May/June 2021 - 13
PLANADVISER - May/June 2021 - 14
PLANADVISER - May/June 2021 - 15
PLANADVISER - May/June 2021 - 16
PLANADVISER - May/June 2021 - 17
PLANADVISER - May/June 2021 - Eyes On The Investment Menu
PLANADVISER - May/June 2021 - 19
PLANADVISER - May/June 2021 - 20
PLANADVISER - May/June 2021 - 21
PLANADVISER - May/June 2021 - 22
PLANADVISER - May/June 2021 - 23
PLANADVISER - May/June 2021 - 24
PLANADVISER - May/June 2021 - 25
PLANADVISER - May/June 2021 - 2021 PLANADVISER DCIO Survey: The State Of DCIO
PLANADVISER - May/June 2021 - 27
PLANADVISER - May/June 2021 - 28
PLANADVISER - May/June 2021 - 29
PLANADVISER - May/June 2021 - 30
PLANADVISER - May/June 2021 - 31
PLANADVISER - May/June 2021 - 32
PLANADVISER - May/June 2021 - 33
PLANADVISER - May/June 2021 - The Promise Of Sustainable Investing
PLANADVISER - May/June 2021 - 35
PLANADVISER - May/June 2021 - Wealth Transfers On The Horizon
PLANADVISER - May/June 2021 - 37
PLANADVISER - May/June 2021 - Rollovers And Fiduciaries
PLANADVISER - May/June 2021 - Caution Needed Regarding Rollovers
PLANADVISER - May/June 2021 - Advisers Giving Back
PLANADVISER - May/June 2021 - Cover3
PLANADVISER - May/June 2021 - Cover4
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