Many of the actions involved in operating a plan make the person or entity performing thema fiduciary. Using discretion in administering and managing a plan or controlling the plan’sassets makes that person a fiduciary to the extent of that discretion or control. Providinginvestment advice for a fee also makes someone a fiduciary. Thus, fiduciary status is based onthe functions performed for the plan, not just a person’s title.
Fiduciaries have important responsibilities and are subject to standards of conduct becausethey act on behalf of participants in a retirement plan and their beneficiaries. Theseresponsibilities 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.
Resources for Plan Fiduciaries
Taking Charge of your Fiduciary Responsibilities