Get used to hearing about three numbers—3(38), 3(21) and 3(16)—and the need to outsource 401(k) fiduciary responsibility.
Investment giant PNC Bank has launched Fiduciary Investment Services through PNC Retirement Solutions, adding the role of investment fiduciary to PNC’s defined contribution plan offering.
The bank is offering a non-discretionary 3(21) Investment Advisory Service that will provide assistance with selecting and monitoring the investment options to be offered to plan participants, while allowing the plan sponsor to maintain discretion over the plan’s investment lineup.
For the discretionary 3(38) Investment Management Service, three types of investment lineups, built for different plan demographic profiles, will be available to plan sponsors and PNC will assume full discretion over fund selection, monitoring, and replacement.
“With the Department of Labor’s continued focus on fee transparency and fiduciary responsibilities, we are helping our retirement plan sponsor clients mitigate their risk by taking on the fiduciary role of advising on or managing investment lineups and providing fund options and services suitable for the particular needs and abilities of their workforce,” Bonnie Fawcett, managing director for PNC Retirement Solutions, said in a statement.
PNC Retirement Solutions added Fiduciary Investment Services to better serve clients who utilize its Vested Interest bundled defined contribution solution and do not work with an independent investment fiduciary. These services will also be offered on a stand-alone basis to plan sponsors that do not wish to change their current plan record keeper at this time. Vested Interest will continue to offer bundled defined contribution plan services without Fiduciary Investment Services to plan sponsors who have appointed a third party investment advisor.
“We have introduced a refined level of fund screening and monitoring that will assist plan sponsors in meeting their obligations under ERISA and ensure that their employees are well served as they invest and plan for retirement,” Fawcett concluded.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
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