What Constitutes a Fiduciary

In an entry in The 457 Consulting Group’s blog, Justin M. Pisellini, President, and Joel G. Clousing, Chief Plan Consultant of The 457 Consulting Group, remind that a fiduciary is anyone that performs the following functions:

• has discretion over plan assets and plan administration;
• provides investment advice for a fee;
• makes decisions concerning investments;
• is appointed to a committee that oversees the plan;
• chooses and terminates service providers;
• can enter into contracts on behalf of the plan sponsor; and
• establishes policies and procedures for the plan.

In short, they say, a fiduciary person acts in a fiduciary capacity when he or she handles money or property on behalf of others. That means exercising responsibility and control regarding choosing the plan and recordkeeper and the investments from which participants choose.