The Employee Retirement Income Security Act (ERISA) is the foundational governing law for employee benefits in the U.S. This Newfront ERISA Fiduciary Library provides an overview for employers to better understand ERISA, insight into emerging litigation, and a deep dive into the core fiduciary duties.

Fiduciary Overview
ERISA is designed to impose on employers the same type of fiduciary obligations as apply to trustees of a trust, who must act in the best interest of trust beneficiaries. These fiduciary duties are commonly described by courts as “the highest known to the law.” Employers in a fiduciary role must act in accordance with that same “best interests” standard with respect to plan participants and their dependents based on the fiduciary duties set forth under ERISA.

ERISA Fiduciary Duties Apply to Employers
In the vast majority of situations, the employer is an ERISA fiduciary. Employers sponsoring a single employer plan are the default ERISA “plan sponsor,” which in turn means they are the default ERISA §3(16) plan “administrator”. The DOL has confirmed that the ERISA plan administrator role is always a fiduciary position by the nature and responsibilities of its position.

ERISA requires that all plans be established and maintained pursuant to a written plan document that sets forth one or more named fiduciaries. In most health and welfare plans, the named fiduciary is the ERISA plan administrator, which is almost always the employer.

The Core Four ERISA Fiduciary Duties
ERISA sets forth four fiduciary duties that form the foundation for employer responsibilities as the named fiduciary and ERISA plan “administrator” with respect to most employee benefit plans:

1. The Duty of Loyalty (Exclusive Benefit Rule)

2. The Duty of Prudence

3. The Duty of Diversification

4. The Duty to Follow Plan Terms

The Newfront ERISA Fiduciary Library

• PDF: Newfront ERISA For Employers Guide

• Webinar: ERISA for Employers: An Overview of Employee Benefits' Overarching Legal Framework

• Fiduciary Deep Dive: 

  • The Core Four ERISA Fiduciary Duties (Part 1)

  • The Core Four ERISA Fiduciary Duties (Part 2)

  • The Pros and Cons of a Health and Welfare Plan Fiduciary Committee