Fiduciary Obligations
ERISA imposes certain fiduciary obligations upon plan trustees. These obligations cannot be passed on to your financial advisor, record keeper or TPA. The burden is lessened with a 3(21) or 3(38) investment fiduciary BUT is NEVER totally erased. Trustees MUST be aware of their fiduciary responsibility as they could be personally liable financially for major missteps. The basic fiduciary tasks are:
- Lowest Cost and Best Performing Mutual Fund, Exchange Traded Fund (ETF), Collective Investment Trust (CIT)
- "Reasonable" and Level Total Plan Expenses
- Environmental, Social and Governance (ESG) Funds, Annuity, Robo Advice, Financial Wellness
- Employee Education
- Investment Policy Statement (IPS)
- Annual Trustee Meeting: Design, IPS, Participant Cost and any issues
- Obtain $1M of ERISA Fiduciary Liability Insurance Coverage for Trustees.
