Fiduciary Advisor Tool Released by EBSA
As part of a series of elaws (Employment Laws Assistance for Workers and Small Businesses) Advisors developed by the U.S. Department of Labor (DOL) to help employers and employees understand their rights and responsibilities under Federal employment laws, EBSA (Employment Benefits Security Administration) launched the ERISA Fiduciary Advisor.
This Advisor is designed to provide an overview of the basic fiduciary responsibilities applicable to retirement plans under the law. The intended audience is employers and third party service providers, such as accountants, attorneys, third party administrators, and others directly involved in the plan.
The basic elements of running a plan under ERISA include:
- A written plan document that describes the benefit structure and guides day-to-day operations;
- A trust fund to hold the plan’s assets1;
- A recordkeeping system to track the flow of monies going to and from the retirement plan; and
- Documents to provide plan information to employees participating in the plan and to the government.
The DOL’s ERISA Ficuiary Tool includes answers to the following questions:
- Who are the plan’s fiduciaries?
- What are fiduciary responsibilities?
- What are my liabilities as a fiduciary and how can I limit them?
- Are some transactions prohibited? Is there a way to make them permissible?
- What are the fiduciary responsibilities regarding employee contributions?
- Is hiring a service provider a fiduciary function, and if so, what do I need to do?
- What should a fiduciary consider regarding fees in deciding on service providers and plan investments?
- When is providing investment advice a fiduciary function?
- How do employees get information about the plan? What are the reporting requirements for the plan?
- What help is available for employers who make mistakes in operating a plan?
- Can a fiduciary terminate its fiduciary duties?
- Tips for Employers with Retirement Plans
- Resources
Additional information for employees is listed in the Resource section.
To view the entire list of elaws Advisors please visit the elaws website.
