Who counts as a fiduciary for a health and welfare plan, what ERISA expects of them, and how much personal risk is really involved.
A health plan fiduciary is anyone with discretionary authority over an ERISA health and welfare plan's management, administration, or assets. That includes employers sponsoring group health plans, plan administrators, and committee members — regardless of job title, it's the function that makes you a fiduciary.
Read the full answerERISA imposes four core fiduciary duties, namely loyalty (acting solely in participants' interest), prudence (acting with the care and skill of a knowledgeable expert), diversification of plan assets where applicable, and following the plan documents so long as they comply with the law.
Read the full answerYes. ERISA Section 409 makes fiduciaries personally liable to restore plan losses caused by a breach of their duties, and they can also face civil penalties and removal. Personal assets are genuinely at risk, which is why governance, documentation, and fiduciary liability insurance matter.
Read the full answerEmployers can delegate many fiduciary functions — to committees, third-party administrators, or advisers — but they can never delegate away all responsibility. Selecting and monitoring the people you delegate to is itself a fiduciary duty that stays with the employer.
Read the full answerYes. ERISA covers virtually all employer-sponsored group health plans, whether fully-insured or self-funded. Fully-insured employers still have fiduciary duties — selecting the carrier prudently, monitoring fees and service, distributing required documents, and handling employee contributions properly.
Read the full answerPut these answers to work
Fiduciary In A Box walks your team through every one of these requirements step by step — documenting decisions, organizing files, and keeping your plan compliant year-round.
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