What are the responsibilities of plan fiduciaries?
Fiduciaries have important responsibilities and are subject to certain standards of conduct because they act on behalf of the participants in the plan. These responsibilities include: • Acting solely in the interest of plan participants and their beneficiaries, with the exclusive purpose of providing benefits to them; • Carrying out their duties with skill, prudence, and diligence; • Following the plan documents (unless inconsistent with ERISA); • Diversifying plan investments; • Paying only reasonable expenses of administering the plan and investing its assets; and • Avoiding conflicts of interest. The fiduciary also is responsible for selecting the investment providers and the investment options, and for monitoring their performance. Some plans, such as most 401(k) or profit sharing plans, can be set up to permit participants to choose the investments in their accounts (within certain investment options provided by the plan). If the plan is properly set up to give participants contro
