April 06, 2017
Nationwide Adds 3(21) Co-Fiduciary Service from IRON Financial
New service offers retirement plan clients greater choice
Columbus, OH - Nationwide has expanded its fiduciary service offerings by adding a 3(21) investment fiduciary service from IRON Financial, LLC (IRON). This addition provides Nationwide’s retirement plan clients greater choice in how they manage investment selection and monitoring.
“Investment selection and ongoing due diligence are important and often complicated responsibilities for a plan sponsor,” said Kevin Devine, leader of 401(k) plan sales at Nationwide. “We know plan sponsors have many time constraints, and we’re dedicated to making it easier for our clients to offer a customized plan. At the same time, we want to ensure we offer a variety of services designed to meet the unique needs of each client and their workforce.”
IRON Fiduciary Services
Nationwide now offers two fiduciary services from IRON to support plan fiduciaries. The options include a non-discretionary 3(21) service and a discretionary 3(38) service. The 3(21) service provides plan sponsors assistance with selecting and monitoring the plan’s investment options, while allowing the plan sponsor to maintain control over its investment lineup. The 3(21) service also provides plan sponsors with the flexibility to develop investment lineups with both active and passive management strategies. Also, both time and risk based asset allocation models are available. With the 3(38) service, IRON maintains full discretion over investment options for a plan and will select, monitor and replace investment options based on the plan’s investment policy statement.
IRON will provide each plan with the following deliverables:
- Investment Policy Statement (IPS) – IRON will create an IPS template, detailing the quantitative and qualitative processes followed by IRON in the selection, monitoring and replacement of recommended funds.
- Quarterly Fiduciary Report – IRON will make a quarterly fiduciary report available through Nationwide websites that includes a comprehensive review of the trust program’s recommended funds and notes any recommended actions for the quarter.
- Variance Report – If quarterly plan holdings include any investments outside of IRON’s current recommended list, then IRON will notify the plan sponsor with a quarterly variance report. Each report will list the investments outside of IRON’s recommendations and note that they are being offered at the plan sponsor's discretion and liability.
“For those plan sponsors who wish to remain involved in the selection of plan level investments, this new fiduciary offering provides a simplification of the process and enables those sponsors to maintain control,” said Dick Friedman, managing director of Corporate Retirement Services for IRON Financial. “IRON has provided its retirement plan sponsors and financial advisors a flexible fiduciary model that encompasses both passive and active investment options, risk based asset allocation models and time based options of varying types that meet their particular plan needs. As an independent investment fiduciary, IRON is pleased to be able to offer this solution with unbiased investment advice.”
Nationwide has proudly served the retirement planning needs of America’s employers for more than 40 years and is one of the largest providers of retirement plans with $114 billion in assets under management. To learn more about Nationwide’s wide-array of fiduciary services, please call 1-800-626-3112.
IRON Financial is an investment management firm with more than 20 years of experience —providing comprehensive solutions to the qualified retirement plan marketplace. Additionally, IRON Financial has annually received certification from the Centre for Fiduciary Excellence, LLC as an ERISA Investment Fiduciary since 2011 and was among the first investment advisors globally to successfully complete the independent certification process.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.