ERISA 3(38)
401k, 403B and SIMPLE IRA plans built for employers.
Managed Employer Plans explains how an ERISA 3(38) managed plan moves the legal liability for investment selection off the employer and onto a professional fiduciary, and why that matters as class action lawsuits against plan sponsors keep climbing. It covers the six pillars of the program, from full fiduciary coverage and algorithmic portfolio management to institutional pricing that typically cuts plan costs 50 to 60 percent, and compares a managed plan line by line against a typical bundled provider, with nothing to pay to switch.
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Book a Call5 Realities Driving the ERISA 3(38) Fiduciary Shift
Leaving employee retirement portfolios locked in passive buy and hold strategies leaves participant savings exposed to severe market downturns while creating massive legal exposure for plan sponsors. A dedicated ERISA 3(38) quantitative investment manager actively controls downside risk, enforces strict fee transparency, and shifts investment liability away from your company. Historical crash metrics and ongoing federal class action lawsuits show why static corporate plan management falls short. Below is the verified data detailing how trillions vanished in standard retirement plans and why regulatory scrutiny on plan sponsors is at an all time high.
During the 2008 financial crash, US retirement accounts lost $4.9 trillion in value across 401k and IRA plans, eliminating 32 percent of worker retirement wealth in a single year (Source: Urban Institute).
The S&P 500 fell nearly 57 percent from its 2007 peak to its 2009 low, forcing passive buy and hold investors to wait until 2013 just to regain their initial account balance.
In 2024 alone, over 130 ERISA class action lawsuits were filed against corporate plan sponsors for failing to monitor high cost funds and improper administration fees (Source: ERISA Litigation Database).
Federal courts consistently penalize plan fiduciaries for selecting expensive proprietary mutual funds that benefit financial institutions rather than serving the sole interest of plan participants.
Standard 401k menus lack dynamic risk management triggers, leaving corporate sponsors legally liable when passive target date funds drop sharply during broad market declines.
Our partner RIA accepts full fiduciary responsibility and legal liability for investment selection and monitoring, removing your company’s exposure. If a fund choice is ever questioned, that responsibility sits with the fiduciary manager, not with your company or your HR team.
A proprietary algorithmic engine watches every position around the clock and rebalances with data driven discipline. No emotion, no guesswork and no set and forget portfolios that drift for years between reviews.
Institutional pricing brings investment management fees down to 0.35 to 0.55% instead of the typical 0.80 to 1.20%. Every fee is disclosed in writing, and most employers save 30% or more compared to bundled providers.
Onboarding support, enrollment events and educational resources that help your team make confident retirement decisions. Financial wellness is built into the plan, not sold as an extra.
Your fund menu is designed around your workforce demographics, income ranges and retirement timelines. Never a cookie cutter, off the shelf lineup that treats every company the same.
A named advisor and service team who know your plan inside and out, with quarterly reviews and ongoing compliance support. Real people who answer, not a rotating call center. Whenever a question comes up, you reach one person who already knows your plan and your people, and so do your employees.
A straightforward process that gets your employees on a better retirement plan without disrupting your business. With your free discovery call, we do a plan analysis, check for fee savings, with no obligation to move forward. From there we design your plan: a custom fund lineup built for your workforce, a fully transparent fee schedule in writing, and a complete ERISA compliance review. When you are ready to move, we handle the full transition for you, run the enrollment events for your employees, and include the HR training so your team is never left guessing. Once your plan is live, the algorithmic engine manages it continuously, your advisor sits down with you for quarterly plan reviews, and support runs year round.
We learn about your company, workforce demographics, current plan pain points and goals. No pressure, just an honest assessment of how we can help.
We build a tailored 401k or retirement plan proposal with an investment lineup, fee structure and service model designed specifically for your team.
The transition is handled for you: recordkeeper coordination, employee enrollment and education sessions. We make the switch easy for HR and employees alike.
The algorithmic engine continuously monitors and rebalances. Your dedicated advisor provides quarterly reviews, compliance support and employee education.
Plan Types We Offer
Whether you are starting your first plan or upgrading an existing one, there is a solution designed for your business.
Traditional and Safe Harbor 401k plans with automatic enrollment, employer matching and full fiduciary investment management. We design the plan, set up the enrollment and matching structure, and manage the investments for you.
Auto EnrollmentEmployer Match DesignVesting SchedulesFlexible profit sharing contributions that reward employees and provide tax advantages for your business. We design the contribution formula around your goals and take care of the paperwork each year.
Discretionary ContributionsTax Efficient DesignFlexible FormulasDefined benefit plans ideal for business owners and executives looking to maximize tax deferred retirement savings. We handle the design and administration so owners can save beyond standard 401k limits.
High Contribution LimitsOwner Focused DesignTax Advantaged GrowthRetirement plans designed for nonprofits, schools and tax exempt organizations with specialized compliance needs. We manage the specialized rules for you, whether your organization falls under ERISA or not.
Nonprofit SpecificUniversal AvailabilityERISA and Non ERISAIndependent fee analysis and plan design review to ensure your current plan is competitive and cost effective. We pull your plan’s real numbers, compare them against the market, and show you exactly where you stand.
Fee ComparisonInvestment AnalysisVendor EvaluationOngoing compliance monitoring, plan document review and fiduciary governance support to keep your plan on track. We track the testing and deadlines, keep your documents current, and support your governance year round.
Annual TestingDocument UpdatesFiduciary OversightEvery plan is different, and the numbers above reflect what we typically see when businesses make the switch. Your own comparison comes from your real plan data, benchmarked line by line in your free analysis.
Specialized vehicles that protect retirement wealth from market loss while keeping continued market growth.
Algorithmic portfolio management through our RIA partners, watching every position with data driven discipline.
Over 100 premier carriers and a century of underwriting expertise building a shield around your life and balance sheet.
Tax advantaged frameworks where your money compounds completely tax free, with liquidity through tax free policy loans.
Dividend paying vehicles from top tier mutual carriers that turn debt payments into generational wealth.