Freedom401k® from CAPTRUST Financial Advisors is a solution for retirement plan sponsors designed to reduce the complexity, distraction, and day-to-day resource drain of managing a retirement plan.

Understanding Fiduciary Roles

If you’re like most plan sponsors, successfully managing a retirement plan can feel like a tall order, especially when regulatory changes keep you on your toes. While fiduciary responsibilities are important, you may find yourself struggling to balance the many other competing demands of your role outside managing your retirement plan.

Did you know that you can decide how much investment responsibility you want to take on yourself?

Technically there are several definitions for types of fiduciaries under the Employee Retirement Income Security Act (ERISA). Knowing what these types of fiduciaries are may help you figure out what level of investment selection and monitoring responsibility you are comfortable with, and if you would like to transfer liability to an investment manager.

Do It Yourself
You are the sole named investment fiduciary to the plan
You select the investment menu without advice from an outside source and have full liability for investment selection. No outside party shares investment fiduciary responsibility.
Get Help
Under ERISA section 3(21), you are a co-fiduciary with an investment advisor
You hire a registered investment advisor (RIA) to assist with plan investment decisions. The RIA may provide services ranging from investment consulting services, to a more holistic engagement, including plan design consulting, vendor selection, participant communication, education, and advice. The plan sponsor is not fully relieved of fiduciary responsibility for selection and monitoring of plan investment options.
Have It Done For You
Under ERISA section 3(38), you select a designated investment advisor to be the investment manager
You hire an RIA as an investment manager to select and monitor your plan’s investment options on an ongoing basis. This investment manager accepts discretionary authority to manage, acquire, and dispose of investment options over time. The investment manager acknowledges in writing that it is acting as a fiduciary with responsibility and accountability for the selection of the investment menu.

A 3(38) arrangement represents the highest level of investment liability transfer possible under ERISA. ERISA views the liability for investment selection as residing with the investment manager. While this does not completely absolve the plan sponsor, liability is defined much more narrowly. ERISA 405(d) provides that under a 3(38) arrangement, “the plan sponsor and/or trustees of the plan are not liable for acts or omissions of the 3(38) investment manager, and are under no obligation to invest or otherwise manage any asset of the plan which is subject to management of that investment manager.”

Click here for a white paper on navigating investment responsibilities.

Freedom401k® represents a “Have it Done For You” approach. By hiring CAPTRUST to act as your plan’s investment manager, plan sponsors can spend less time and energy on plan investments, and more time providing participants with resources to help them take advantage of and contribute to the plan.

At Your Fingertips

If you would like to learn more about the Freedom401k® program or how we can help you, please provide the following information, and we will call you within one business day.