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Who or what is a Fiduciary?
If you answered this question by saying "I am," then you're probably right. A fiduciary is anyone who has authority or control over the management of a retirement plan or its assets.

Simply speaking, if you own a business and you offer a retirement plan, you likely have fiduciary responsibilities. These are serious and important responsibilities, but they can be very rewarding. Making good fiduciary choices provides an excellent opportunity to help control the integrity of your employees' retirement savings, and your own.

Don't feel alone in your fiduciary responsibilities. Plan sponsors (that's you if you own the business), plan trustees, officers and committee members most often have responsibilities, as well. Anyone who controls, in any way, how a plan is administered or how its assets are invested is probably a fiduciary. For example, if you participate in the selection of a plan provider or funds, you are probably a fiduciary.

The main rules for fiduciaries are listed in ERISA (The Employee Retirement Income Security Act), a set of laws that protect the participants and beneficiaries of retirement and welfare plans. The laws focus on honesty and integrity and obligate fiduciaries to:

• Act in the best interest of plan participants and beneficiaries.
• Understand and be aware of all expenses paid from the plan.
• Make prudent decisions regarding the plan, including investments and service providers.
• Act in accordance with plan documents (terms, provisions, etc.).
• Monitor the plan's investments.
  

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