by Matthew D. Hutcheson and Joshua P. Itzoe
Prudent fiduciary decision making is critical to the goal of achieving successful retirement outcomes and delivering meaningful benefits to plan participants. However, fiduciary responsibility under the Employee Retirement Income Security Act (ERISA) is often an area of considerable misunderstanding and confusion. To compound this issue, few fiduciaries know who the term applies to, what duties are required or the liability associated with such a monumental responsibility. This article provides a general overview of fiduciary responsibility under ERISA and outlines several best practices fiduciaries can take to prudently discharge their duties.
*Reproduced with permission from Benefits & Compensation Digest, Volume 45, Number 8, August 2008, pages 16-21, published by the International Foundation of Employee Benefit Plans (www.ifebp.org), Brookfield, Wis. Statements or opinions expressed in this article are those of the authors and do not necessarily represent the views or positions of the International Foundation, its officers, directors, or staff. No further transmission or electronic distribution of this material is permitted. All rights reserved.
Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.