Ten Fiduciary Responsibilities
This week I will be conducting a webcast of the "Fiduciary Responsibilities under ERISA." In preparation I include a quick checklist of some of the main responsibilities and duties of a fiduciary. This list is not all inclusive.
- A fiduciary must act solely in the best interests and for the exclusive benefit of plan participants and beneficiaries.
- A fiduciary must act with care, skill, and diligence that would be exercised by a reasonably prudent person familiar with such matters.
- A fiduciary must defray all plan expenses in a reasonable manner.
- A fiduciary must comply with all plan documents and all pertinent government laws and regulations.
- A fiduciary must seek the advice of experts and evaluate said advice if unsure of his/her own expertise.
- A fiduciary must not use his/her position for personal gain.
- A fiduciary must not partake in certain transactions with parties providing services to the plan.
- A fiduciary must not act on behalf of any party whose interests are adverse to the interests of the plan or the participants.
- A fiduciary must make sure plan diversify plan investment options. Huh?
- A fiduciary must prudently select investment options for the plan, periodically evaluate the performance of such vehicles and determine whether or not to change the participant options.
If you want a more comprehensive list, please join me on March 21, 2006 for my one-hour online learning webcast, where we will discuss this subject further. Should you have any comments, please use the tab below "Add Comment" to respond.
