Retirement & 401(k) Solutions · Fiduciary

ERISA 3(21) & 3(38) fiduciary 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:

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 & Risk Management Focus

Our fiduciary services are structured to help healthcare employers.

Duty of Loyalty & Prudence

Meet ERISA's duty of loyalty and prudence requirements.

Process Documentation

Maintain thorough fiduciary process documentation to withstand DOL or IRS scrutiny.

Reduced Litigation Risk

Reduce exposure to fiduciary breach claims and litigation risk.

Regulatory Alignment

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.

Ready to strengthen your plan's fiduciary governance?

Schedule a free consultation with a Cognis fiduciary advisor.

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