Both types of plans are managed and administered by fiduciaries

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Retirement plans: Retirement plans include 7702 plans, pension plans, 401(k) plans and profit-sharing plans, such as a stock purchase plan. Welfare plans: Welfare plans keep employees healthy or provide for their families if they die. Welfare plans include medical benefits, dental benefits, and life and disability insurance programs. Tip When offering employee benefits, consider going beyond FMLA-mandated leave to offer extended parental leave, flextime, unlimited PTO, mental health services and more to attract top talent.


What is a fiduciary? A fiduciary is someone who act list of saudi arabia cell phone numbers s on behalf of another person or group and is legally and ethically bound to act in their best interests. When it comes to retirement plans, many people may be considered fiduciaries and are liable in the event of a lawsuit. According to ERISA — which was created to ensure employees could reap the rewards these plans promise — anyone with “discretionary authority” is considered a fiduciary. Employee benefit plan fiduciaries may include the following: People involved in selecting and managing the employee benefits plan Any plan trustees, directors and officers Anyone involved in internal investment committees Anyone with a say in any aspect of the plan’s design, investments or benefits Anyone listed by name in the employee benefit plan document Anyone with direct access to and control over the plan How does ERISA affect fiduciary liability insurance? ERISA doesn’t require employers to have employee benefits plans.


However, the law requires employers to manage their plans properly if they have them. When ERISA was enacted, fiduciary responsibility came under scrutiny. Therefore, fiduciary liability insurance became necessary because offering benefits plans now carries risk. Employers seek out fiduciary liability insurance because much can go wrong when managing a benefits plan. No matter how well intentioned the people running a benefit plan are, their actions can still give rise to a fiduciary liability claim.