Functions of 403(b) Service Providers

Sponsors of 403(b) plans may hire a variety of service providers to handle one or more aspects of managing the plan, including the following: 

Plan administrators. Plan administrators run the 403(b) plan on a dayto-day basis, assuring that the plans comply with relevant requirements concerning eligibility and participation, and conducting periodic reviews of the plan and its assets, among other things. Plan sponsors can perform some or even all of these functions themselves, but may hire a third-party administrator for some or all of the above functions. Administrators may also hire investment advisors to assist them with selecting investment options. 

Vendors. Vendors are entities that provide investment options — generally either annuity contracts or mutual funds. 

Record keepers. Record keepers are generally in charge of processing participants’ enrollments in plans, tracking contribution types and participants’ investments, providing plan sponsors and participants with account statements and other information to help participants manage their accounts.