We hear this all the time, “What makes TAG Resources unique?” Sure, there are other companies who say they can do what we do. And, some try (although without the technology investments we have made to make it actually work), but here are 4 things you need to ask when searching for 3(16) services and then compare the answers to TAG’s.
- “Do you sign the Form 5500?” If they say no, they’re not meeting TAG’s standards. TAG signs the 5500 for their Plan Sponsors.
- How many 3(16) clients do you have and what’s your average length of service? Hands down, you’ll find that TAG Resources is the largest. We probably outnumber our nearest competitor in the marketplace 10 to 1 and our length of service is indisputable – we started the 3(16) product offering in 2004.
- Does your current Third Party Administrator (TPA) offer 3(16) services? Chances are, they don’t. Only 7% of the TPAs offer 3(16) according to Plan Sponsor magazine’s 2016 survey.
- Is your 3(16) program integrated into your core data system or is it dependent on data from several sources? Significant technology investments are required to do this program properly. This is not something that lends itself to a manual system.
- Here’s a bonus question for you – Will the TPA or other provider be named in the plan document as a fiduciary? Many claim 3(16) services, but there are different levels of services and many try to skate by with less than optimal. TAG’s program has the highest fiduciary level allowed by law.
Here is a link to a good article from Plan Sponsor that goes into more depth about what decisions need to be made when you outsource fiduciary responsibilities to lessen your administrative burden.