fiduciary

Consulting group

general Information


1.    ERISA FIDUCIARY ROLES

  • Plan Administrator – §3(16)
  • Named Fiduciary – §402
  • Trustee – §403
  • Investment Manager – §3(38)
  • Individuals that provide advice – §3(21)
  • Others that owe a duty of loyalty OR act with authority or control over the management of the plan or the plan’s assets – §3(21)



2.       FIDUCIARY MYTH

  • Fiduciary Responsibility Cannot Be Delegated
  • DoL says:

              “a named fiduciary will not be liable for acts and omissions of other named fiduciaries in carrying out fiduciary responsibilities which have been allocated to them…”
                                                                29 CFR 2509-75.8


3.  A fiduciary must discharge their duties…

              “…with respect to a plan solely in the interest of the participants and beneficiaries and for the exclusive purpose of providing benefits to participants and their beneficiaries…”
                                                          ERISA § 404(a)(1)(A)
                                                          Exclusive Purpose Rule

 
4. A fiduciary must discharge their duties…
              “…with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims…”
                                                          ERISA 404(a)(1)(B)
                                                          Prudent Expert Rule



5. Core Duties of a Fiduciary

  • Loyalty to participants
  • Incur only reasonable expenses
  • Manage the plan prudently
  • Diversify the plan assets
  • Follow the plan documents 

ERISA § 404(a)(1)