The Employee Retirement Income Security Act of 1974 (ERISA) any person(s) or entities who exercise discretionary control or authority over plan management or plan assets, have discretionary authority or responsibility for the administration of a plan, or provide investment advice to a plan for compensation or have any authority or responsibility to do so are subject to fiduciary responsibilities. Plan fiduciaries include, for example, plan trustees, plan administrators, and members of a plan's investment committee. 

The primary responsibility of fiduciaries is to run the plan solely in the interest of participants and beneficiaries and for the exclusive purpose of providing benefits and paying plan expenses. Fiduciaries must act prudently and must diversify the plan's investments in order to minimize the risk of large losses. In addition, they must follow the terms of plan documents to the extent that the plan terms are consistent with ERISA. They also must avoid conflicts of interest. 

Fiduciaries who do not follow these principles of conduct may be personally liable to restore any losses to the plan, or to restore any profits made through improper use of plan assets. Courts may take whatever action is appropriate against fiduciaries who breach their duties under ERISA including their removal. To meet the plan sponsor responsibilities, employers need to understand some basic rules, specifically the Employee Retirement Income Security Act (ERISA). ERISA sets standards of conduct for those who manage an employee benefit plan and its assets (called fiduciaries). 

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SEC/DOL Question For Fiduciaries Learn what questions you should ask to find potential conflicts of interest.

An Overview of Fiduciary  Responsibilities.pdf
Learn the responsibilities of a fiduciary. 

Fiduciary Letter and Acknowledgement .doc
Customize this letter using your own letterhead and have your Investment
Committee members sign it.
 

Sample By-Laws for Investment Committee.pdf

Useful Links

ERISA Compliance Assistance

Department of Labor

Articles of Interest

Unbundled Solutions

Pension Plans Overview 

Defined Benefit Plans

Negotiating for a Better Retirement Plan

403(b) Plans for Not-for-Profit Employees

Section 457 Plans

When it Comes To 401(k) Choices Less is More Part I

When it Comes To 401(k) Choices Less is More Part II

DB Plan Termination

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