Fiduciary Duties Under ERISA

Fiduciary Duties Under ERISA

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Question

Under ERISA, fiduciaries must:

-act solely in the interest of and for the exclusive purpose of benefiting, the plan participants and beneficiaries;

-act with the ________, prudence and diligence of a prudent person acting in like capacity;

-diversify the plan's investments to protect it from the risk of substantial loss;

-act in accordance with the provisions of the plan documents to the extent that the documents comply with ERISA;

-refrain from engaging in prohibited transactions.

Answers

Explanations

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Explanation

A fiduciary is required to discharge all duties with respect to a plan "with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims."

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