For many plan sponsors, designating an ERISA 3(38) investment manager to manage, select, and monitor the retirement plan’s investments can be beneficial. It allows the plan sponsor to have more time and attention to focus on other aspects of the organization along with managing tasks that are otherwise difficult to outsource. There are many benefits if you decide to hire a 3(38) fiduciary, but it’s important to understand the advantages (and disadvantages) of their role and the questions you should ask when vetting an investment advisor/manager to take on the role for your retirement plan.
