Who is a fiduciary, and what responsibilities do fiduciaries assume with respect to qualified retirement plans?
Under Section 3(21) of the Employee Retirement Income Security Act of 1974 (ERISA) as amended, a fiduciary is a person who exercises any discretionary authority or control with respect to administering or managing a plan, or controlling the plans assets. Fiduciary status is based on the functions performed for the plan, not just a persons title. Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of plan participants and their beneficiaries. These 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; * 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 invest
