Plan Fiduciary Responsibilities

June 22, 2012 at 5:52 am 1 comment

A Plan Fiduciary has many different responsibilities.   Those responsibilities include being prudent, maintaining investment diversification and having reasonable fees.   Smart plan fiduciaries maintain records regarding all of their duties.  Although I hope no fiduciary ends up in the situation, a plan fiduciary may need to demonstrate that they performed due diligence in their duties.  For instance, the fiduciary may need to prove that the fees that were charged to the plan were competitive and reasonable. With the upcoming fee disclosures, there is always a chance that this could come up. One way to demonstrate due diligence might be checking fee schedules against competitors for the plan’s service providers every few years. Then, documenting that the fees are competitive for corporate records would be one way to illustrate that the plan fiduciary is complying with this requirement.

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Entry filed under: Ethics. Tags: , , , , , , , , , , .

The IRS’s Information Efforts Is It Time for Plan Fiduciaries to Review Fees?

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Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

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