Question: We are considering hiring a plan advisory firm to provide ERISA 3(38) investment management services. Do you have any current information on
the popularity of this service with plan sponsors?
Answer: You are not alone in considering the services of an ERISA 3(38) investment manager. According to PLANSPONSOR’S 2025 3(38) Investment Manager Survey, nearly 48% of defined contribution plan sponsors reported that they currently use a 3(38) investment manager, and another third reported that they are considering hiring one. Among those that use a 3(38), the primary reasons are to reduce fiduciary liability (73.77%), ensure compliance with ERISA (59.02%) and improve investment performance (55.74%). Factors that count most when selecting a 3(38) provider are: “experience
and track record;” “cost of services” and “reputation in
the industry.”
