A Guide to Fiduciary Prudence: Part 2, What are the Roles and Responsibilities of a Plan Fiduciary?

Thanks to the first blog post in our fiduciary prudence series, you already know that if you are either named as a fiduciary or act in a manner where you are functioning as one (e.g., you answered “yes” to the question “Do I have the discretionary authority over the management of plan assets or over the administration of the Plan?”), you are a fiduciary.

But now what? After determining fiduciary status, it is imperative that you understand your roles and responsibilities as a plan fiduciary.

First and foremost, it is important to know when these roles and responsibilities begin. Your role as a fiduciary begins at the inception of the plan. Once an employer decides to sponsor a plan—which in and of itself is NOT a fiduciary decision—the roles and responsibilities of a fiduciary are born.

Now that you know when your role begins, it is essential to understand what roles and responsibilities exist as a fiduciary.Continue reading

Avoid Fiduciary Risk Q&A

After our recent Educational Series webinar on Avoiding Fiduciary Risk Chase Tweel, J.D., LL.M., a Pension Consultants ERISA Analyst responded to questions. See what he had to say below. Additionally, if you missed the live webinar, you can watch the recorded webinar here.

Question: Our document requires us to make employer’s stock available as an investment option. You mentioned earlier that following plan documents is a fiduciary duty, but it is also a duty to be prudent. It would be imprudent and/or disloyal to allow participants to invest in company stock under certain circumstances, so what should we do?Continue reading