Understanding Fiduciary Responsibilities in Retirement Plans

Understanding Fiduciary Responsibilities in Retirement Plans

Anyone exercising discretionary control over plan management or assets, or giving paid investment advice for a fee.

Who Is a Fiduciary

Anyone exercising discretionary control over plan management or assets, or giving paid investment advice for a fee.

Core Duties

Act solely in participants’ best interest (exclusive benefit rule)

Prudence and diversification

Follow plan documents and pay only reasonable expenses

Recent Developments

Court actions and regulatory initiatives continue to shape the scope of fiduciary advice; sponsors should monitor updates with counsel.

Plan Sponsor Action Checklist

Checklist

Adopt or update your Investment Policy Statement (IPS).
Checklist

Document committee meetings and decisions.
Checklist

Benchmark fees and monitor service providers annually.
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References

  • ERISA fiduciary duty framework; recent DOL rulemaking context.