The Fable Of Fiduciary Liability And 404(c) Plan Design
- Topics:
- Fiduciary Liability
- Source:
- Wiley Rein & Fielding
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Overview: ERISA provisions on fiduciary liability can be very confusing. This article looks at the blurred lines surrounding plan design and fiduciary liability-or are they blurred? It discusses about plan design is a settlor function, not a fiduciary function. In other words, plan design is left to the employer as the sponsor of the plan; it is not left to the employer functioning as a fiduciary. It explains a functional test applied by court when they are trying to determine if a person is a fiduciary. ERISA defines the term "fiduciary" in functional terms. provides that a person is a fiduciary only to the extent (i) he exercises any discretionary authority or discretionary control respecting management of such plan or exercises any authority or control respecting management or disposition of its assets, (ii) he renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property of such plan, or has any authority to do so, or (iii) he has any discretionary authority or discretionary responsibility in the administration of such plan.
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Format: HTML | Date: Apr 2001 | Pages: 1
