ERISA 3(21) & 3(38) SERVICES
Managing a retirement plan in today’s healthcare environment is complex. As a healthcare employer, you face unique challenges—balancing compliance, fiduciary responsibility, employee engagement, and cost efficiency—while staying focused on patient care.
Plan Sponsors are subject to strict fiduciary obligations under the Employee Retirement Income Security Act of 1974 (ERISA). Our ERISA 3(21) and 3(38) fiduciary services are designed to help plan sponsors meet these obligations, mitigate risk, and maintain compliance in an increasingly complex regulatory environment.
ERISA 3(21) Fiduciary Services
As an ERISA §3(21) investment fiduciary, we serve in a co-fiduciary capacity alongside the plan sponsor. This shared responsibility model allows employers to retain ultimate decision-making authority while receiving professional investment guidance. Services include:
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- Providing investment recommendations consistent with ERISA’s prudence standards
- Assisting with the development and maintenance of an Investment Policy Statement (IPS)
- Supporting fiduciary due diligence processes and documentation requirements
- Conducting regular investment performance reviews and benchmarking
- Advising on plan design considerations specific to healthcare organizations
ERISA 3(38) Fiduciary Services
Under ERISA §3(38), we accept full discretionary authority for the selection, monitoring, and replacement of plan investment options. By delegating this responsibility, healthcare employers transfer significant fiduciary liability to us as the named investment manager. Services include:
- Full discretion over investment lineup construction and ongoing management
- Continuous monitoring of investment options against IPS criteria
- Execution of timely investment changes to maintain compliance with fiduciary standards
- Detailed reporting to plan sponsors and committees for oversight and documentation
- Alignment of investment strategies with participant demographics and plan objectives
Compliance and Risk Management Focus
Our fiduciary services are structured to help healthcare employers:
- Meet ERISA’s duty of loyalty and prudence requirements
- Maintain thorough fiduciary process documentation to withstand DOL or IRS scrutiny
- Reduce exposure to fiduciary breach claims and litigation risk
- Ensure investment practices remain aligned with evolving regulatory guidance
By engaging us in a 3(21) or 3(38) capacity, healthcare employers can strengthen fiduciary governance, reduce administrative burden, and demonstrate a prudent process in the oversight of their retirement plans.
Why Partner With Us
✔ Shared fiduciary responsibility under ERISA 3(21)
✔ Healthcare-specific expertise & benchmarking
✔ Improved employee retirement readiness
✔ Reduced administrative burden for HR & finance teams
ERISA 3(21) SERVICES
Helping healthcare employers reduce risk, improve outcomes, and focus on patient care.
Our Role as a 3(21) Fiduciary
We share fiduciary responsibility for your retirement plan—providing independent advice, documenting prudent processes, and helping you meet your ERISA obligations.
Investment Oversight
- Create & maintain Investment Policy Statement (IPS)
- Select, monitor & recommend funds/QDIAs
- Quarterly performance reviews & benchmarking
Fiduciary Governance
- Train plan committee members
- Document decision-making processes
- Benchmark fees & services against peers
Vendor Management
- Evaluate & negotiate recordkeeper contracts
- Monitor service provider performance
- Deliver ongoing fee transparency reporting
Plan Design & Compliance
- Recommend auto-enrollment & escalation features
- Support nondiscrimination testing & compliance
- Coordinate with TPAs, ERISA counsel & auditors
Participant Education
- Group workshops & one-on-one consultations
- Easy-to-understand communication materials
- Digital tools tailored to busy healthcare staff
ERISA 3(38) SERVICES
Full investment discretion so you can focus on patient care.
Our Role as a 3(38) Fiduciary
We take on full fiduciary responsibility for selecting, monitoring, and replacing your retirement plan’s investments. Unlike a 3(21) advisor, we make these decisions on your behalf—reducing your liability and administrative burden.
Discretionary Investment Management
- Assume full authority to select, monitor & replace funds
- Construct and maintain a diversified investment lineup
- Implement, monitor & adjust Qualified Default Investment Alternatives (QDIAs)
- Provide quarterly performance reporting & benchmarking
Fiduciary Risk Transfer
- Accept legal responsibility for investment decisions
- Reduce your committee’s fiduciary liability exposure
- Maintain documentation to demonstrate prudent process
Vendor & Fee Oversight
- Evaluate recordkeeper platforms for investment flexibility
- Ensure cost-effective share classes & fee structures
- Provide ongoing fee benchmarking and transparency
Plan Design & Compliance Alignment
- Align investment options with plan objectives & demographics
- Support ERISA, DOL & IRS compliance requirements
- Coordinate with TPAs, ERISA counsel & auditors as needed
Participant Support & Education
- Deliver clear, unbiased participant education
- Provide one-on-one consultations & financial wellness tools
- Tailor communications to busy healthcare professionals
Why Healthcare Employers Choose 3(38)
✔ We make the investment decisions — so you don’t have to
✔ Reduced fiduciary liability for your committee
✔ Healthcare-specific expertise & benchmarking
✔ More time for HR & leadership to focus on patients and staff
Got Questions?...We have Answers
BRINGING THE FUTURE INTO THE PRESENT
From retirement planning, investment strategies, tax optimization, to estate planning, we offer personalized solutions tailored to your unique circumstances.
Address
2325 E. Camelback Rd., Ste 400, Phoenix AZ 85016
Phone
(480) 364-7401
We specialize in personalized retirement solutions for small & mid-sized businesses, the self-employed, and individual investors in healthcare.
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experience of our firm & financial advisers
LEGAL DISCLOSURE
Cognis Group is a State registered investment adviser, pursuant to the Investment Advisers Act of 1940, as amended, with principal offices in Phoenix AZ. Cognis Group and its representatives are in compliance with the current filing requirements placed upon registered investment advisers by those states in which it maintains clients. A copy of our current written disclosure statement (Form ADV-Part 2) discussing business operations, services and fees is available upon request or may be downloaded here.
This website does not constitute an offer to provide investment advisory services in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction. The information contained on this site is for informational purposes only and should not be construed as financial, investment, legal, tax, or other advice. By accessing this website, you agree to be bound by the above terms and conditions.
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