3(16) Administrative Fiduciary Services

3(16) Administrative Fiduciary Services offered by recordkeepers offer to ease plan sponsors’ fiduciary responsibilities through day-to-day plan management support and routine monitoring.  It includes operational handling of key participant transactions such as hardship withdrawals, loans (including default notifications), QDRO processing, rollovers, force-outs, and required minimum distribution monitoring. The service also covers communications and compliance support through required notices, quarterly statements, SPD/SMM maintenance, and Form 5500 preparation and related filings where applicable. Eligibility is tied to specific plan and operational requirements, including a 401(k) plan with full-service recordkeeping, system-supported features, eDelivery readiness, and a custodian. Overall, this recordkeeping model aims to reduce administrative and communication burden while improving documentation and keeping plan operations running smoothly.

A 3(16) Administrative Fiduciary Services offering is intended to reduce plan sponsors’ fiduciary exposure and day-to-day workload. The positioning emphasizes best-in-class plan management support, routine monitoring, notice delivery, and distributions management to create operational efficiencies and allow sponsors to focus more time on growing their business. The service is framed as added support and protection that helps reduce both administrative and participant-communication burden while promoting peace of mind through smoother plan operations and the ability to delegate details to specialized plan experts.

On the administration side, the 3(16) recordkeeper acts as an administrative fiduciary for defined operational functions, including determining eligibility for and approving hardship withdrawals and plan loans, as well as notifying participants of loan defaults. It also reviews, approves, and processes qualified domestic relations orders (QDROs), identifies and notifies terminated participants eligible for force-outs, and initiates applicable force-outs when required. In addition, it approves incoming rollovers, monitors required minimum distributions (RMDs), supports electronic collection and maintenance of beneficiary designations, and communicates directly with designated beneficiaries to process beneficiary distributions. Key distribution events that may be approved include termination, death, and in-service distributions.

Notices, reporting, and disclosures are identified as a core service area. Responsibilities include producing quarterly participant statements; providing and maintaining the Summary Plan Description (SPD); providing Summaries of Material Modifications (SMMs); delivering required QDIA notices, safe harbor notices, and participant fee disclosures; and supporting compliance filings related to Form 5500. Form 5500 support includes preparation assistance, review and/or preparation of the Form 5500 and related schedules/forms, signature support, and (where applicable) support for Forms 8955-SSA and 5558.

Also noteworthy is the plan’s eligibility criteria and operational prerequisites. The approved plan type is 401(k), with full-service recordkeeping only, system-supported vesting and eligibility determination, and system-supported distribution provisions. The model supports eDelivery and requires approximately 70% of participant email addresses to enable eDelivery, and it requires Ascensus Trust Company as the trust custodian. Where forced rollovers apply, an automatic rollover agreement must be on file with Ascensus Trust Company.

Finally, “Plan Operations” is highlighted as a featured service area focused on maintenance of plan-related data and supporting records. This includes maintaining distribution elections data, loan application records, participant transaction records, payroll and census data, and salary deferral change data, with the intent of improving accuracy, documentation, and the day-to-day running of the plan.

In summary, 3(16) Administrative Fiduciary Services are designed to shift defined administrative fiduciary tasks and routine operational work from the plan sponsor to the provider, while strengthening documentation and consistency in plan processing. If the plan meets the stated eligibility criteria and operational prerequisites, the offering can help streamline transactions, improve notice and filing execution, and support a smoother participant experience.

Bridgebay Financial, Inc. advises employer retirement plans including 401(k), 403(b), 457, profit-sharing, and defined contribution plans—on investment policy statements, committee charters, asset allocation, investment style selection, fund selection, ongoing monitoring, and provider evaluation. The firm’s advice is delivered through consultations with Retirement Committees and does not involve discretionary account management services.  Bridgebay creates Investment Policy Statements that provide a disciplined framework for plan governance, due diligence, and compliance with ERISA, DOL, and other regulations.  These policies set plan objectives, authorities, responsibilities, and controls, and are reviewed annually to help fiduciaries fulfill their responsibilities.  

Bridgebay conducts asset allocation and gap analyses to ensure fund lineups are diversified, efficient, and meet 404(c) requirements, identifying gaps or redundancies in fund offerings.  The firm evaluates fund menus for cost-effectiveness, asset class representation, and alignment with participant demographics and preferences, including socially responsible investments.  Advanced quantitative tools are used to assess target date and target risk funds, comparing them to benchmarks and peers to help sponsors understand performance.  Fee analysis is a core service, with Bridgebay ensuring fee transparency, benchmarking expenses, and assisting sponsors in renegotiating or recapturing fees for improved plan value.  

Ongoing monitoring are emphasized, with quarterly reviews and user-friendly reports provided to Retirement Committees. Bridgebay’s proprietary scoring system, proactive meetings, and vigilant oversight support prudent governance and help plan sponsors make informed decisions.