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ERISA 3(16) Fiduciary Services

In addition to standard recordkeeping and administrative services, NWPS can provide the following services as an ERISA Section 3(16) co-fiduciary to a plan. In most cases, the Plan Sponsor is the Administrator of the plan.

  • Prepare for signature and file annual Form 5500 and schedules and attachments under authority from the Administrator.
  • Monitor operational compliance of plan with the terms of the plan document and applicable laws.
  • Assist the Administrator with maintaining the plan in compliance with Department of Labor regulation § 2550.404c-1, pertaining to participant direction of investments, including dissemination of information required by that regulation and blackout notices, if applicable.
  • Prepare and mail required notices to participants, including enrollment forms, automatic enrollment notices, safe harbor notices, qualified default investment notices, diversification notices (publicly traded employer securities only), and notices of tax consequences (Internal Revenue Code § 402(f)). Printing and mailing costs to be passed through to the client or plan participants at cost.
  • Assist the Administrator with maintaining an ERISA Recapture Account; review revenue sharing arrangements.
    Consult with the Administrator regarding compliance with the standards under FAB 2003-03; authorize payment from plan assets of approved fees.
  • Track eligibility and vesting service according to employer-provided census and records.
  • Adopt and implement Qualified Domestic Relations Orders (QDRO) procedure; review and approve all QDROs; communicate objections or approval to interested parties and their attorneys.
  • Review and approve requests for hardship distributions according to safe harbor guidelines; authorize approved withdrawals; notify employer of required suspension of elective contributions.
  • Adopt and implement loan procedures; review applications for loans; approve loans as requested.
  • Determine eligibility for in-service withdrawals and post-termination distributions under the plan; authorize distributions and notify trustee of required withholdings.
  • Review correspondence from IRS, DOL and other governmental agencies and respond or disseminate to proper person for response.
  • Review documents prepared by all third parties who have a legal relationship to the plan.
  • Attempt to locate lost participants using reasonable efforts.