// Combined Efficiency Option
Discover the Combined Efficiency Option 3(16)
Is a TPA a 3(16) administrator?
A third party administrator or 'TPA' handles the administration of a company and at no point assumes the responsiblity of a fiduciary, unless hired to do so.
Will CEO 3(16) provide investment fiduciary services?
No. Currently, CEO 3(16) is only serving as an administrative fiduciary.
What is a 3(16) Fiduciary?
The “Plan Administrator” of a qualified retirement plan is defined in section 3(16) of ERISA.
The Plan Administrator should not be confused with a “Pension Administrator” or a “Third Party Administrator” (TPA).
Unlike the TPA, the Plan Administrator has the following primary responsibilities:
• Ensures all required filings with the federal govern-
ment are made in a timely manner (Form 5500, etc.)
• Signs the Form 5500
• Monitors deposits to ensure they are remitted in a timely manner
• Maintains integrity of plan document as it relates to plan amendments and changes
• Hires plan service providers if no other fiduciary has that responsibility
• Ensures that the required disclosures are provided to plan participants
• Fulfills other responsibilities as set forth in plan documents
• Assists in interpreting the plan document
• Administration of Loans (develops procedures and process)
• Distribution of benefits as follows:
- Administration of QDROs (develops procedures and process)
- Administration of Hardship Withdrawals
- Administration of all other Withdrawals
The ERISA 3(16) administrator is a plan fiduciary and assumes the liability that comes with it. However, they have no direction in selecting plan investments.