Section 3(38) defines “investment manager” as a fiduciary due to their responsibility to manage the plan’s assets. ERISA provides that a plan sponsor can delegate the responsibility (and thus, likely the liability) of selecting, monitoring and replacing investments to a 3(38) investment manager/fiduciary. A 3(38) fiduciary may only be a bank, an insurance company, or a registered investment adviser (RIA) subject to the Investment Advisers Act of 1940.

Both 3(21) and 3(38) advisors accept fiduciary responsibility and adhere to ERISA §404(a)’s duty to serve solely in the interest of plan participants and both have to meet the “prudent man” standard of care. Plan sponsors retain the responsibility to select and monitor the adviser, regardless of their adviser’s fiduciary status.

The quality of your 401(k) plan will impact not only your employee’s ability to retire well, but your own ability to retire well, and your ability to attract and retain quality employees. There’s more to plan for than just performance. You’ll need to consider the fees charged by plan providers, the lifestyle and unique needs of your staff and the size of your match when deciding how well your team will meet their retirement goals.

As a sponsor and fiduciary to your company’s 401(k) plan, you have a responsibility to help ensure plan performance and success. Alaska Retirement Solutions helps protect you from liability by promoting optimal plan outcomes for your employees through education and guidance.

Alaska Retirement Solutions retirement philosophy is simple. We know that you’re busy and don’t have the time to manage your company’s 401(k) plan, so we decrease your responsibility by providing the guidance and resources for success.

Understanding The DOL Fiduciary Rule

As a business owner, you should know, laws are constantly changing, and your company’s 401K plan might be at risk. More importantly, you should know that you, the business owner, personally are liable.

One common misconception is that you are covered by your broker. This is simply not true. Just because your broker may be with a large Wall Street firm of sorts, they are not necessarily fiduciaries, nor will they take the fall for any plan irregularities, conflicts of interest and unreasonable fees of which your employees are not informed. You will.

The Department of Labor (DOL) is enforcing its new fiduciary laws regarding retirement plans. As a business owner with a 401K, you’re now facing unprecedented risk of lawsuits that can seriously damage your commercial and personal wealth. As the owner, you are considered the 401K plan administrator and legally have full fiduciary responsibility.

In 2015 alone, the DOL collected over $696 million for direct payments to plans, participants and beneficiaries from businesses, the Employee Benefits Security Administration (EBSA) closed 2,441 civil investigations with over 67% of those cases resulting in money for plans or other corrective action, and the indictment of 61 persons for crimes related to employee benefit plans.

Beginning April 2017, the Department of Labor (DOL) Fiduciary Rule will require those who advise you on your retirement plan – Such as broker-dealers, investment advisors, and insurance agents – to act in your best interests when they provide investment advice for a fee or other compensation. While brokerage firms have long operated under standards designed to take clients’ needs, risk tolerance and other suitability considerations into account, the rule addresses potential conflicts of interest that can arise. This however, doesn’t help you with existing plans already in place and they will need updating to be made compliant.

Sound complicated? It doesn’t have to be. We want to be a resource to help you understand the rule and its potential impact to you. We can help you every step of the way, decreasing your risk, decreasing your personal liability, and often, decreasing your fees.

The DOL plans to initiate audits of thousands of retirement 401K plans this year. The law and your responsibilities are extremely complex, and you need to know every aspect of your plan’s fees, funds, fiduciary responsibility, education and service platforms. Alaska Retirement Solutions is here to navigate that for you.

Not only that, you work hard for your money, and your employees work hard for you. They trust you to protect their retirement and investment funds that they receive through their employment. We want to make sure everyone gets the service and returns they deserve without paying over the top fees for plans that are not your best option.

Alaska Retirement Solutions is a proven fiduciary and professional retirement plan advisor that you can trust, helping you confidently choose a financial path that is best for you, reducing your personal risk liability—unbiased without conflicts of interest.

Contact us to help relieve the burden of your entire company’s financial responsibility so you can concentrate on your next business endeavor and trust that you are in safe hands.

Factors Driving Fees

The characteristics of your plan, the investments offered, and the services you receive impact fees.

Primary factors determining fees are:

• plan size, type and average participant balance
• plan complexity
• payroll frequency and format
• transaction volumes
• fund type and asset allocation (percent of assets in revenue-producing funds
• cash flow going into revenue-producing funds
• scope of services
• communication program deliverables such as number of onsite locations, meeting frequency, customization requirements and print or electronic materials
• level of automation versus manual processes required to administer your plan

Fee Disclosure

Fees should be documented and disclosed at the plan level and to participants on a periodic basis.

Sponsor Benefits

Alaska Retirement Solutions is your local privately owner Registered Investment Advisor (RIA) who equips their clients with the tools and systems that produce measurable results. We develop individualized strategies and high-touch relationships with client to increase our success rate. For you, it means the welcomed confidence of:

• Act as investment fiduciary to plan
• Act as fiduciary to participants
• Retirement Plan Design
• Investment policy development
• Fund menu design
• Investment monitoring/committee meetings
• Fund replacement/fund manager search
• Asset allocation modeling
• Plan design consultant
• Compliance review
• Vendor search
• Transition services to new record-keeper
• Provider fee and service reviews

• Provider management and oversight
• Education program strategy
• Employee meetings
• Shared knowledge, applied analysis
• Non-alignment with any single plan provider for impartial, objective, balanced advisory