The phrase “fiduciary liability” is probably familiar to you in the context of corporate directors and officers, and their fiduciary responsibilities to a company. However, there is another type of fiduciary liability which many suggest is equally, if not more, important.
Who is a Fiduciary?
The Employee Retirement Income Security Act of 1974 (ERISA) classifies individuals providing, involved and/or charged with developing, administering and overseeing a company’s benefit or welfare employee benefit plans as fiduciaries. These include plan administrators, trustees, company officers and directors, and human resource personnel. In academic terms, a fiduciary is “any person/organization who has discretionary authority over the administration or management of a plan or its assets.” This includes exercising authority.