3(16) Services Schedule

Pursuant to authority granted to it in the “Plan” (as reflected in the corresponding Service Order), the Client is delegating to Service Provider the responsibility and authority to perform the 3(16) Services. The Service Provider hereby accepts the delegation of responsibility and acknowledges it will act as a fiduciary, as defined in section 3(21) of ERISA, to the extent it provides the 3(16) Services. 

You will retain residual responsibility over the administration and management of the Plan under the Plan and Section 3(16) of ERISA in relation to: a) all responsibilities not explicitly delegated to Service Provider, including b) all duties and services outlined in the Section IV of the MSA Agreement.  This retention by you of certain responsibilities shall apply, notwithstanding any argument, understanding, belief, or interpretation that these are responsibilities normally allocated to or associated with the section 3(16) of ERISA, and notwithstanding any Plan provision. 

Except as specifically outlined in this 3(16) Services Schedule and elected by you, or another Services Schedule you elect, Service Provider and its employees are NOT fiduciaries of the Plan, and neither this Service Schedule nor any other provisions of this Agreement. 

A. 3(16) Services.

If you have elected for us to provide the 3(16) Services, we will perform the 3(16) Services specifically indicated on the Service Order.   

If “3(16) 5500 Signing” is selected on the Service Order in the 3(16) section we will: 

• Sign and file Form 5500 with appropriate governmental agency 

If “3(16) Plan Notices” is selected on the Service Order in the 3(16) section we will: 

• Deliver the legally-required Plan notices and disclosures to participants as specified on the Service Order. 

If “3(16) Distribution Processing” is selected on the Service Order in the 3(16) section: 

• We will determine the propriety of, and approve or deny, participant distribution requests, including hardship withdrawals and in service distributions. 

• You must notify us when a participant incurs a distributable event (severed employment, death or disability). 

If “3(16) Loan Processing” is selected on the Service Order in the 3(16) section:  

• We will determine the proprietary of, and approve or deny, participant loan requests. 

• You must identify to us any participants who leave employment for military service or other leave of absence which may result in a suspension of loan repayments, and any participants who return from a military service or other leave of absence which may require a resumption of loan repayments. 

If “3(16) Domestic Relations Orders Processing”  is listed on the Service Order in the 3(16) section, we will: 

• Review domestic relations orders submitted to the Plan and determine whether proposed qualified domestic relations orders (“QDROs”) are qualified 

• For approved QDROs, direct segregation of alternate payee’s benefit 

In providing Plan Services related to Distributions, Hardship Withdrawals, Participant Loans, QDROs, or any other participant-directed action, you or your designated representative (which may the Plan’s recordkeeper) will be responsible for authenticating the proper identity of participants and beneficiaries prior to the submission of participant or beneficiary-initiated requests to us for processing.  To the extent permitted by applicable law, we will be entitled to rely that all such requests submitted to us have been properly authenticated in advance.   You agree to at your own expense, defend, indemnify and hold us harmless against all claims, demands, actions, liabilities, damages, losses, costs and expenses (including court costs, and attorneys’ fees) arising out of a third party claim against us to the extent it arises out of the failure to properly authenticate a participant or beneficiary’s identity.  Subject to the foregoing, we may decline to process such a request and seek further instruction from you if we have reason to believe there has been a possible compromise of Personal Data and/or an attempt by a bad actor to obtain a fraudulent loan or distribution.   

B. Maintenance of Fidelity Bond for Service Provider.

ERISA requires that fiduciaries of retirement plans be covered by a fidelity bond. If 3(16) Distribution Processing or 3(16) Loan Processing services are selected in the Service Order, you are responsible for ensuring that Service Provider is added as a covered fiduciary under your Plan’s bond. Notwithstanding the foregoing, the Service Provider may procure such bond at its option, and will pass on the cost of such bond, and all administrative costs, to you. You are responsible for maintaining any necessary fidelity bonds ERISA requires. 

C. Co-fiduciary Liability.

Client acknowledges and agrees that, if the Plan is governed by ERISA, then as a result of Service Provider performing 3(16) Services, Service Provider may incur co-fiduciary obligations.  Such co-fiduciary obligations may require Service Provider to take action to remedy a breach of fiduciary duty, of which it is aware, by Client or other Plan fiduciaries.  Remedial action may include (a) correcting errors or communicating with participants; (b) pursuing claims against other fiduciaries or service providers; and/or (c) advising the DOL of such breach and the potential of harm to participants.