Who are ESOP fiduciaries and what are their responsibilities?
Any person with discretion over the management or administration of a plan, or who exercises any authority or control over plans assets, is a fiduciary under ERISA. The ESOP trustee, or any other person or committee designated in the plan documents as responsible for making investments in company stock, is a named fiduciary. ERISA requires that plan fiduciaries act prudently and solely in the interest of plan participants. Three of the most important responsibilities of an ESOP fiduciary are: Securing a proper valuation of the stock; Assuring that the interests of plan participants are protected in ESOP transactions; and Approving all purchases and sales of ESOP stock. Return to the top of the page.
