Who is a fiduciary and what are their responsibilities?
If your plan is subject to ERISA, a “fiduciary” is an individual, corporation or association holding assets in trust (or a permissible trust substitute) for another party, often with the authority and legal duty to make decisions regarding financial matters on behalf of the other party.
ERISA provides that anyone who has discretionary control over plan assets is considered a fiduciary. This can include:
If you are not subject to ERISA because you are an exempt organization (e.g., public school, public university, governmental entity, church) you may have state imposed quasi-fiduciary standards that you must adhere to. To learn more, click here.
If your organization holds assets for employees in the form of a retirement plan, you or another designated individual is responsible to:
Additionally, some best practices you may want to follow include: