Human Resources Professionals: Reducing Your Personal Liability In 401(k) Plan Administration

Executive Summary

Many human resources professionals administer their employer's 401(k) plan (and health and welfare plans) and may unknowingly be accepting personal liability for fiduciary breaches. In accordance with ERISA, a human resources professional becomes a plan fiduciary (subject to personal liability) by being named a fiduciary in the plan documents or to the extent that he/she (i) exercises discretionary authority or discretionary control respecting the management of the plan or exercises any authority or control respecting management or disposition of its assets; (ii) renders investment advice for a fee or other compensation; or (iii) has any discretionary authority or discretionary responsibility in the administration of the plan.