Your Role as a Plan Sponsor

What is the difference between a 3(21) and a 3(38) investment fiduciary?

These refer to two sections of ERISA describing different kinds of investment fiduciary support. A 3(21) investment advisor recommends investments and serves as a co-fiduciary, while you as the sponsor keep final decision-making authority and the responsibility that comes with it. A 3(38) investment manager has discretionary authority to select, monitor, and replace the plan's investments, and accepts fiduciary responsibility for those specific decisions. Even with a 3(38), the sponsor still has a duty to prudently select and monitor the manager.

NOTICE OF DISCLAIMER Investment advisory services offered through Global Retirement Partners, LLC, dba Retirement Impact, LLC, an SEC registered investment advisor. Global Retirement Partners, LLC (GRP) dba Retirement Impact, LLC is not a law or accounting firm, and therefore they cannot provide legal or tax advice. The information herein is provided for general information only, and is not intended to constitute legal or tax advice as to an organization's or individual's specific circumstances. Subsequent developments may result in this information becoming outdated or incorrect. It is your obligation to seek current information. You should consult an attorney, accountant, or other legal or tax professional regarding the application of the general information provided here to your organization's specific situation in light of your or your organization's particular needs.