Plan Sponsor and Plan Participant Services

At SkyOak Wealth, we function as an investment fiduciary, sharing in the investment liability with the plan sponsor in either the ERISA 3(21) Investment Fiduciary & ERISA 3(38) Investment Manager capacity. The 21st definition (ERISA Section 3(21)) is the definition of fiduciary:

Availability of start up plans, defined benefit plans, non-qualified plans, cash balance plans, health savings accounts and self-directed brokerage accounts

The 38th definition in the act (ERISA Section 3(38)) is the definition of an investment manager. An investment manager is a special type of fiduciary, one who has been specifically appointed to have full discretionary authority and control to make the actual investment decisions. The manager may select, monitor, remove and replace the investment options offered under the plan.

A 3(38) adviser has the discretion to make fund decisions. The plan sponsor has less liability in this relationship because they offload fiduciary risk for investments to the adviser; however, employers still carry a fiduciary duty to monitor the adviser.

Whichever capacity that the plan sponsor chooses, we will assist them with the construction of an Investment Policy Statement that will serve as a guide to how investments are selected, monitored and changed to best serve the retirement income and investment strategy needs of employees. We will then research, create and regularly monitor a customized line-up of diversified funds, including the QDIA (Qualified Default Investment Alternative) vehicle that participants will be defaulted into should they enroll in the plan but neglect to choose investments.

Because of our role as a retirement plan fiduciary, the needs of the plan participants are at the forefront of our priorities. The level of service we can/will provide to the plan participants will depend upon not only the plan design but the custodian of the assets. Plan sponsors can feel confident that we will ensure that each participant has the education and enrollment services available to them for their retirement plan needs. We can assist them with rollovers of old retirement plan assets as well as help them develop their own investment strategy and diversified asset allocation during their working years and into their retirement.