For Plan Sponsors · Owners · HR Leaders
You are personally liable for your company's 401(k).We can change that.
Under ERISA, owners and HR decision-makers are personally on the hook for imprudent plan decisions. As your appointed 3(38) investment manager, we accept that discretionary fiduciary responsibility in writing — lifting it off you and your company.
The plan sponsor's dilemma
Most owners don't realize how much liability they've quietly taken on.
The DOL reports recovering more than $1.4 billion from plan sponsors and fiduciaries in a single year. Litigation against small-plan sponsors is rising sharply, and "we just used the recordkeeper's default lineup" is not a defense.
01
Personal exposure
ERISA §409 makes fiduciaries personally liable for participant losses caused by imprudent decisions.
02
Hidden fees
Small-plan expense ratios average 1.16% — often hundreds of thousands over a decade.
03
No time to monitor
Prudent process requires ongoing investment review, benchmarking, and documentation.
The 3(38) difference
A 3(21) advisor gives advice. A 3(38) manager takes responsibility.
Under ERISA §3(38), a discretionary investment manager assumes the fiduciary duty for selecting, monitoring, and replacing plan investments. When we sign that appointment, the liability for those decisions transfers to us — in writing.
- 3(21) co-fiduciary
- Recommends investments. You approve them and remain on the hook.
- 3(38) discretionary
- Selects, monitors, and replaces the lineup. We assume fiduciary responsibility for those decisions.
- You retain
- The prudent responsibility to hire and monitor the 3(38) — a much narrower duty.
The engagement
A structured, disruption-free transition.
Keep your existing recordkeeper. We slot in as the investment fiduciary. Most plans transition in under 60 days with no participant impact beyond an upgrade in oversight.
01
Plan review
We benchmark your current fees, investment lineup, and fiduciary process — at no cost.
02
Written appointment
Sign the 3(38) engagement. Fiduciary liability for investment decisions transfers to us.
03
Optimize the lineup
Institutional share classes, prudent diversification, documented monitoring.
04
Ongoing stewardship
Quarterly reviews, annual plan-sponsor reports, and professional account management for employees.
The Hidden Fiduciary Liability in Your 401(k) Plan
A 12-page briefing for owners, CFOs, and HR leaders. Learn what ERISA actually requires of plan sponsors, how the DOL enforces it, and the specific steps a 3(38) engagement removes from your desk.
- • ERISA §404(a) prudent-expert standard, in plain English
- • The four fiduciary duties owners most often violate unknowingly
- • 3(21) vs. 3(38) side-by-side comparison
- • Sample fiduciary file checklist
Ready to see how much liability we can lift?
Twenty minutes with a fiduciary advisor. No obligation, no product pitch — just a candid look at your current plan and where the exposure sits.