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.