--- title: The advantages of a 3(21) fiduciary description: The advantages of a 3(21) fiduciary --- [Skip to content](https://blog.plexusgroupe.com/plexus-blog/retirement-plans/advantages-321-fiduciary#main-content) [![The Plexus Groupe](https://blog.plexusgroupe.com/hs-fs/hubfs/Logo%20and%20Design%20Files/plexus_sis_logo_color.png?width=1468&height=368&name=plexus_sis_logo_color.png "The Plexus Groupe")](https://www.plexusgroupe.com/) # The advantages of a 3(21) fiduciary 16 March 2016 [Artoon](https://blog.plexusgroupe.com/author/artoon) [Retirement Plans](https://blog.plexusgroupe.com/tag/retirement-plans), [News](https://blog.plexusgroupe.com/tag/news) As a company that’s focused on successful corporate retirement plans, Plexus Financial Services is a 3(21) investment co-fiduciary for our clients.So what is a 3(21) fiduciary? The Employee Retirement Act Income Security Act of 1974 (ERISA) sets out three guidelines. A fiduciary, per ERISA: • … “exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets.) • … “renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority or responsibility to do so, or • “. . . has any discretionary authority or discretionary responsibility in the administration of such plan.” In short, the law provides for a 3(21) fiduciary to carry risk just like a retirement sponsor does, and that is a very important distinction. Furthermore, a co-fiduciary isn’t tied to picking a particular fund; the focus **must be** on analyzing the best investment options for the **plan participants**. And because they must have a plan’s best interest in mind, fee transparency is a must for 3(21) fiduciaries. This is a very important point to consider, because hidden fees have cost taxpayers billions of dollars every year, per White House data. For more information on the benefits of having a 3(21) fiduciary, or for any insurance-related questions, contact Plexus Financial Services at 847-307-6222, or visit their website at [PlexusFs.com](http://www.plexusfs.com/). *Securities and advisory services offered through Plexus Financial Services LLC, member FINRA/ SIPC, a registered investment adviser.* References Aven Gladych, Paula. [“3(21) fiduciaries more popular among plan sponsors,” benefitspro.com,](http://www.benefitspro.com/2011/11/09/321-fiduciaries-more-popular-among-plan-sponsors?slreturn=1458157876) November 9, 2011. “[Fact Sheet: Middle Class Economics: Strengthening Retirement Security by Cracking Down on Backdoor Payments and Hidden Fees."](https://www.whitehouse.gov/the-press-office/2015/02/23/fact-sheet-middle-class-economics-strengthening-retirement-security-crac) The White House, Statements and Releases, February 23, 2015. [![plexus](https://blog.plexusgroupe.com/hubfs/Imported_Blog_Media/Plexus_CTA_final.png)](https://blog.plexusgroupe.com/) ### Related Post ##### [Large or small, where do you fall? Form 5500 and Audit Timelines](https://blog.plexusgroupe.com/plexus-blog/retirement-plans/large-or-small-where-do-you-fall-form-5500-and-audit-timelines) Insurance plan administrators are required to file IRS Form 5500, *[Annual Return/Report of Employee...](http://www.dol.gov/ebsa/5500main.html)* ##### [How the U.S. fiduciary rule changes affect advisors -- and what investors need to know](https://blog.plexusgroupe.com/plexus-blog/retirement-plans/fiduciary-rules-change-looking-out-for-buffalo-groves-best-interest) By now, investors have likely heard of the expected changes to U.S. rules governing the fiduciary... [![](https://blog.plexusgroupe.com/hs-fs/hubfs/Imported_Blog_Media/20190823_210154FB.jpg?width=352&name=20190823_210154FB.jpg)](https://blog.plexusgroupe.com/plexus-blog/2019/9/3/2019-client-appreciation-event) ##### [2019 Client Appreciation Event](https://blog.plexusgroupe.com/plexus-blog/2019/9/3/2019-client-appreciation-event) August 23, 2019 @ The Wrigley Rooftops [![The Plexus Groupe](https://blog.plexusgroupe.com/hs-fs/hubfs/Logo%20and%20Design%20Files/plexus_sis_logo_color.png?width=1468&height=368&name=plexus_sis_logo_color.png "The Plexus Groupe")](https://www.plexusgroupe.com/) HQ: 21805 W. Field Parkway Suite 300 Deer Park, IL 60010 847.307.6100 [communications@plexusgroupe.com](mailto:communications@plexusgroupe.com) Copyright © 2022 The Plexus Groupe. All Rights Reserved. [Privacy Policy |](https://www.plexusgroupe.com/privacy-policy) [Terms & Conditions](https://www.plexusgroupe.com/privacy-policy#:~:text=with%20its%20operators.-,TERMS,-OF%20USE) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Artoon", "url" : "https://blog.plexusgroupe.com/author/artoon" }, "dateModified" : "2019-12-09T20:05:38.286Z", "datePublished" : "2016-03-16T17:55:11.000Z", "headline" : "The advantages of a 3(21) fiduciary", "mainEntityOfPage" : { "@id" : "https://blog.plexusgroupe.com/plexus-blog/retirement-plans/advantages-321-fiduciary", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.plexusgroupe.com/hubfs/Plexus%20Logos/The%20Plexus%20Groupe/Plexus-External-Padded.png" }, "name" : "The Plexus Groupe LLC" } } ```