Plan governance, which consists of the processes put in place for managing a retirement plan, is extremely important. All parties must understand their roles and the laws and regulations that must be followed.

At Justabout Wealth, all of the plans we manage are fee-based, so we can act as either Section 3(21) or 3(38) fiduciaries to put ourselves on the same level of responsibility as the trustees and/or investment committee of the plan.

• Section 3(21) Fiduciary – We act in a co-fiduciary capacity of making recommendations to an investment committee, which is guided by an Investment Policy Statement (IPS). The committee votes on our recommendations and decides a course of action.
• Section 3(38) Fiduciary – We have full discretion to make investment changes in the plan without consulting with a committee. The company still have a fiduciary duty to monitor the advisor, though.