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The following information is derived from information contained in the publication, “Meeting Your Fiduciary Responsibilities,” issued by the Department of Labor’s Employee Benefits Security Administration.
Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. These responsibilities include:
Following the terms of the plan document is also an important responsibility. The document serves as the foundation for plan operations. Employers will want to be familiar with their plan document, especially when it is drawn up by a third-party service provider, and periodically review the document to make sure it remains current. For example, if a plan official named in the document changes, the plan document must be updated to reflect that change.
Diversification another key fiduciary duty helps to minimize the risk of large investment losses to the plan. Fiduciaries should consider each plan investment as part of the plans entire portfolio. Once again, fiduciaries will want to document their evaluation and investment decisions.
The following information is derived from information contained in the publication, “Meeting Your Fiduciary Responsibilities,” issued by the Department of Labor’s Employee Benefits Security Administration.
Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. These responsibilities include:
- acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them; carrying out their duties prudently;
- following the plan documents (unless inconsistent with ERISA);
- diversifying plan investments; and
- paying only reasonable plan expenses.
Following the terms of the plan document is also an important responsibility. The document serves as the foundation for plan operations. Employers will want to be familiar with their plan document, especially when it is drawn up by a third-party service provider, and periodically review the document to make sure it remains current. For example, if a plan official named in the document changes, the plan document must be updated to reflect that change.
Diversification another key fiduciary duty helps to minimize the risk of large investment losses to the plan. Fiduciaries should consider each plan investment as part of the plans entire portfolio. Once again, fiduciaries will want to document their evaluation and investment decisions.
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