3(15) service

[PS]

Hi, 

One of the plan is terminating due to bankruptcy, the company is in the process of implementing the 3(16) services how does that change the plan termination process? will the record keeper company will need to do things that is normally done by the plan sponsor?   

We only prepare the NDT and 5500, will this needs to be filed by us in case the 3(15) service is implemented.  What our responsibility will need to be taken care?

Thanks

 

[BG5150]

What is a 3(15) service?  Was that a typo for 3(16) services?

if so, what responsibilities were given tot he 3(16) administrator?  You need to look at the agreement.

[PS]

Sorry, yes its 3 (16).   Let me check the agreement. 

[BG5150]

And, having a 3(16) agreement in place does not absolve the plan sponsor of his or her fiduciary responsibilities to the plan.  The buck starts and stops with them even if the 3(16) administrator is tasked with some responsibility to run the plan.

[PS]

Agree, but I believe the testing and 5500 will need to be prepared and filed by the record keeper correct? 

[BG5150]

Again.  It all depends on what the 3(16) Agreement says.

Often, the 3(16) agreement does call for the 3(16) administrator to sign and file the 5500.  Who did the testing in the past?  Same responsibility I would guess.

(Other responsibilities MAY include implementing deferral changes, furnishing notices, approving distributions incl. hardships)

[PS]

We only prepared it in the past, with the amendment I believe we will now file it as well.  Thank you. 

[BG5150]

24 minutes ago, PS said:

We only prepared it in the past, with the amendment I believe we will now file it as well.  Thank you. 

Filing and signing are two different things.  And may be done by two separate entities.  Are you signing the 5500, too?

[PS]

Yes, I believe so.