Services | Fiduciary Services
The duty to act prudently is a fiduciary’s main responsibility.
Offering a retirement plan can be one of the most challenging, yet rewarding, decisions an employer can make. The employees participating in the plan, their beneficiaries, and the employer benefit when a retirement plan is in place. Managing its assets, however, require certain actions and involve specific responsibilities.
ERISA sets standards of conduct for plan sponsors and those who manage an employee benefit plan and its assets (called fiduciaries). The duty to act prudently is one of a fiduciary’s central responsibilities under ERISA. It requires expertise in a variety of areas, such as investments. Lacking that expertise, a plan sponsor will want to hire someone who has that professional knowledge to recommend investment options for their plan.