ERISA Fiduciary Duties

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 care, skill, 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 ________;

-refrain from engaging in prohibited transactions.

Answers

Explanations

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Explanation

ERISA establishes several guidelines for fiduciary conduct with respect to employee benefit plans. These principles evolved from the common law of trusts, as interpreted by state courts and pre-ERISA requirements for the tax qualification of plans. Fiduciaries must observe these guidelines in all aspects of their dealings with a plan or its assets.