Is the Market Ready for 3(16) Fiduciary Services?

A recent advisor survey found a growing awareness – and interest – in embracing 3(16) fiduciary services. What’s your take?

Pentegra recently conducted a survey of retirement plan advisors to determine what their attitudes are toward 3(16) fiduciary outsourcing, and found that 84% of respondents said they are considering recommending 3(16) administrative services.

While most employers are not aware that they can choose not to be the responsible fiduciary for plan administrator duties, survey evidence shows they are learning they can outsource those duties. In contrast, a common misconception is that many employers probably believe they’ve already “outsourced” these duties to their TPAs, when in reality they have only obtained clerical help from a non-fiduciary service provider.

What’s more, more advisors believe their clients are receptive to outsourcing services. The results show that more than 34% of advisors believe their clients are receptive to 3(16) services, while another 56% believe their clients are somewhat receptive.

This week we’d like to know what you – and your plan sponsors – think. Is the time “right” for a broader adoption of 3(16) level services – or not?

You can reply to this week’s NAPA Net Reader Poll at https://www.research.net/r/67N7BV5.

And you know we’ll have it all wrapped up for you on Friday!

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