Understanding Your Fiduciary Obligations
As a plan trustee, you can't outsource responsibility - but you can get help meeting it.
ERISA places specific duties on plan trustees that cannot be fully shifted to advisors, record keepers, or TPAs. Even with a 3(21) or 3(38) fiduciary, you retain oversight responsibilities and potential personal liability for major missteps. We help you understand those duties and put practical processes in place to meet them.
As a trustee, you must be able to show that you:
- Offer a sensible, cost‑effective menu of investments for participants.
- Monitor and maintain “reasonable” total plan expenses.
- Consider and document decisions around options such as ESG funds, annuities, robo‑advice, and financial wellness tools.
- Provide employees with appropriate education and access to information.
- Maintain and follow an Investment Policy Statement (IPS).
- Hold regular trustee meetings and keep minutes of key decisions.
- Carry appropriate fiduciary liability insurance coverage.
