November 05, 2014
Nationwide Expands 3(38) Fiduciary Service
3(38) service from IRON Financial to include monitoring of managed accounts
Columbus, Ohio - Nationwide, a U.S.-based diversified insurance and financial services organization, announced today it has expanded the company’s 3(38) investment fiduciary service from IRON Financial, LLC. The service will now include fiduciary monitoring of Nationwide ProAccount, Nationwide’s managed account service, at the plan level for no additional cost.
When a plan sponsor elects the 3(38) service, IRON Financial assumes the responsibility and legal liabilities associated with selecting, monitoring and replacing plan investments under section 3(38) of the Employee Retirement Income Security Act of 1974 (ERISA). In an industry first, IRON Financial can provide plan sponsors with an additional service and extra layer of protection by extending its scope of work to include monitoring of Nationwide’s managed account service, when it is available.
“At Nationwide, our goal is to make it easier for America’s businesses to offer a successful retirement plan,” said Joe Frustaglio, vice president of private sector retirement plan sales for Nationwide. “Expanding the 3(38) investment fiduciary service helps us accomplish that goal by enabling both plan sponsors and participants to work with investment experts to tailor the optimal retirement plan, and improve plan engagement and health while reducing fiduciary risk.”
Changing market dynamics and evolving regulation around the role and definition of a fiduciary, as well as increased awareness among plan sponsors about the ability to legally delegate their fiduciary responsibilities, have prompted many plan sponsors to seek help from outside professionals. As a result, Nationwide has seen increased demand for outsourced fiduciary services. Since introducing the 3(38) investment fiduciary service from IRON Financial in 2011, approximately 830 plan sponsors with nearly $890 million in assets have opted to outsource the investment selection and monitoring process.1
“Nationwide is a respected retirement plan provider with a strong track record of offering innovative fiduciary services. We’re excited to be working together on an industry first,” said Dick Friedman, managing director of corporate retirement services for IRON Financial. “By assuming both the responsibility for investment discretion and managed account service monitoring, we are able to help plan sponsors outsource an unprecedented level of fiduciary responsibility and liability.”
Nationwide is committed to providing retirement plan clients with a full array of fiduciary services and education. In addition to 3(38) investment fiduciary service from IRON Financial, Nationwide offers fiduciary support through Fiduciary SeriesSM, Fiduciary Warranty, Morningstar® 3(21) Fiduciary Service, Nationwide ProAccount® Discretionary Managed Account Service and the ANB Trust Full Discretionary Trustee Retirement Service.
Plan sponsors interested in learning more about Nationwide’s fiduciary service options should call 1-800-626-3112.
About IRON Financial
IRON Financial, LLC, is an independent asset management firm with deep expertise in delivering liquid alternatives with absolute returns to investors, combined with boutique-level service. IRON provides fiduciary and retirement solutions to a broad array of defined contribution plans and investment intermediaries. We serve clients including publicly traded companies, privately held entities, union and non-union plans, and not for profit organizations. Under section 3(38) of ERISA, the plan sponsor may shift the liability for the investments in the plan to a qualified third party. IRON manages the entire investment process and menu offering, which provides the plan sponsor the strongest transfer of liability available in the qualified plan arena.
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 and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; specialty health; pet, motorcycle, boat and farm insurance. For more information, visit www.nationwide.com.