Fiduciaries must follow the plan document, act prudently, diversify investments, and pay only reasonable expenses. Establish a committee charter and meeting cadence; keep minutes and materials (EBSA, 2024).
Fee transparency rules require fiduciaries to understand provider compensation. Review 408(b)(2) disclosures, compare fees to benchmarks, and document decisions annually (EBSA, 2024).
Maintain a clear plan file: governing documents, SPDs/SBCs, amendments, 5500 filings, service agreements, fee disclosures, investment policy (if any), and committee minutes. Consistency between documents and operations is essential.
For retirement plans, deposit employee deferrals as soon as administratively feasible to avoid prohibited transactions and excise taxes. For health plans, coordinate with carriers and administrators so notices and contracts match practice (EBSA, 2024).
When unsure, consult ERISA counsel or an experienced advisor—small adjustments in governance significantly reduce risk while improving participant outcomes.
References
- EBSA. (2024). *Meeting Your Fiduciary Responsibilities.* U.S. Department of Labor. https://www.dol.gov/agencies/ebsa
- EBSA. (2024). *A Look at 401(k) Plan Fees.* https://www.dol.gov/agencies/ebsa