What are fiduciary responsibilities?
Fiduciaries are subject to standards of conduct under ERISA because they act on behalf of participants in a retirement plan and their beneficiaries. Fiduciary 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. The duty to act prudently is one of a fiduciarys central responsibilities under ERISA. It requires expertise in a variety of areas, such as investments. If the fiduciary does not have the expertise required, he or she should hire someone with that professional knowledge. In addition, prudence focuses on the process for making fiduciary decisions. It is wise to document decisions and the basis for those decisions. For instance, in hiring any plan service provider, a fiduciary may want to sur
