Karen, the HR director of a growing company, called me one afternoon. “It started with an employee loan request. Then someone asked if the employee was eligible. Payroll found a missed deferral change. Our CFO wanted to know who was responsible.”
“What did you tell him?” I asked.
“I told him I was calling you!”
Karen’s company had a recordkeeper, a payroll company, a CPA, and an investment advisor. Like many businesses, they assumed someone was handling the day-to-day administration of the retirement plan.
“The problem,” I said, “is that in situations like this where multiple experts are involved, no one may formally own the responsibility to manage the retirement plan.
“A retirement plan requires much more than selecting investments. Someone has to monitor eligibility, review loans and distributions, coordinate payroll, provide required notices, maintain compliance, adopt plan amendments and restate the plan when required by the IRS and so on. When those things fall through the cracks, the employer—not the providers—is responsible.”
“I thought our investment advisor handled all that.”
“Usually they handle investments. Administration is a different job.”
“So who’s keeping an eye on all those moving parts?”
“That’s exactly the question you—and every employer—should ask.
“Retirement plans have become increasingly complicated. New laws, changing regulations, payroll coordination, participant notices, and compliance requirements all create additional work—work that often lands on HR.”
“What’s the alternative?”
“You can outsource many of those administrative responsibilities to a 3(16) fiduciary like Concierge. We’ll become responsible for the administrative functions we agree to handle, and that will create a much clearer line of accountability.”
“And what does that mean for us?”
“Fewer administrative headaches, better documentation, stronger compliance, and less time wondering whether something important slipped through the cracks.”
Businesses routinely outsource payroll, tax preparation, IT, and cybersecurity because the cost of mistakes is high. Retirement plan administration deserves the same level of attention.
A qualified 3(16) fiduciary like Concierge can reduce administrative risk and let your people focus on what they do best—running the business.