When an employer decides to sponsor a qualified retirement plan, they accept certain fiduciary
responsibilities. One critical responsibility is the management and control of the plan assets.
Discretionary authority over qualified plan investments is a heavily regulated function.
Adherence to the Prudent Expert standard carries additional liability. Sponsors who properly
use a 3(38) Fiduciary Investment Manager may delegate the fiduciary responsibility for
investment-related decisions and shield themselves from the associated liability.
The use of auto features in 401(k) plans has continued to climb in popularity over the past decade.