What Are an ERISA Fiduciary’s Responsibilities for Retirement Plans in 2026?

In Brief:

• An ERISA fiduciary is anyone with discretionary authority over a retirement plan’s administration or assets. Fiduciary status depends on the level of authority and responsibility, not job title.
• ERISA requires fiduciaries to act solely in the interest of plan participants and beneficiaries. Core duties include acting prudently, following plan documents, diversifying investments, paying only reasonable plan expenses, and avoiding prohibited transactions.
• Prudent oversight should be documented. Committee meeting minutes, an investment policy, and a clear basis for selecting providers help demonstrate compliance and may be reviewed during an employee benefit plan (EBP) audit.
• Most retirement plans must adopt written SECURE 2.0 amendments by December 31, 2026. Plan sponsors should review plan documents at least annually to confirm the plan operates as written.
• Fiduciary responsibilities can be delegated, but oversight cannot be fully outsourced. Selecting a provider is itself a fiduciary decision, and sponsors must continue monitoring provider performance, reports, and fees.

Many employers offer some type of retirement savings plan, and it is consistently ranked as one of the most important benefits to employees. The opportunity to accelerate retirement savings through an employer plan is essential. For plans subject to ERISA, plan administrators and other fiduciaries also take on responsibilities for how the plan is managed and monitored. Those responsibilities may be shared or delegated, but fiduciaries still need to understand what ERISA requires and what oversight looks like. Failing to meet these obligations can result in penalties. To help clients, prospects, and others, JLK Rosenberger has summarized the key details below.

What Is an ERISA Fiduciary?

An ERISA fiduciary is someone responsible for making decisions about a retirement plan. Fiduciaries must act in the best interest of the plan’s participants and beneficiaries.

Under ERISA’s rules, fiduciary status depends most on the level of authority and responsibility, not necessarily the job title. For example, a person who has discretion over plan administration or manages plan assets is likely a fiduciary for those functions.

ERISA formally recognizes several different roles within a plan. The Section 402(a) named fiduciary has authority over the plan’s management and administration. A Section 3(16) plan administrator has other responsibilities, such as filing Form 5500 and ensuring that participants have “sufficient information” on the plan. A Section 3(21) investment advisor provides investment advice while the plan fiduciary generally owns final decision-making. A Section 3(38) investment manager takes it a step further and has the authority to make investment decisions within the scope of the arrangement.

For plan sponsors, the important point is knowing who is responsible for each part of the plan and what authority has been given to outside providers. It’s also important to know that not every plan decision carries fiduciary responsibility. An employer’s decision to establish a plan, change its features, or terminate it is generally a business decision. Putting those decisions into practice, however, can involve fiduciary duties.

What Are the Fiduciary Responsibilities?

ERISA sets standards for how fiduciaries are expected to manage and oversee a plan. The Department of Labor (DOL) identifies several basic responsibilities.

• Act in the Interest of Plan Participants and Beneficiaries — Fiduciaries must put plan participants and beneficiaries first. They are the priority. Plan decisions should be made for the benefit of the participant, not based on any potential benefit for the employer or any one individual.
• Carry Out Responsibilities Prudently — Prudence is about both the decision and how it was made. Fiduciaries should seek help when they do not have the expertise needed. ERISA does not expect a plan administrator to be an expert in every investment or plan administration issue. It does, however, expect fiduciaries to use appropriate expertise when necessary.Any decision regarding the plan should also be documented to show prudent oversight. For example, if a plan is choosing an investment manager or service provider, the fiduciaries should have a reasonable basis for the selection. Regular committee or governance meetings, written minutes, and an investment policy can also help show how plan oversight is being carried out. Employee Benefit Plan (EBP) audits may review any of these types of processes, among other areas of the plan.
• Follow the Plan Documents — The plan generally needs to be administered according to its written documents, as long as those terms comply with ERISA. Sponsors should review the documents at least annually and make sure the plan is operating as written. Recently, the SECURE Act and some SECURE 2.0 provisions have affected several plan features, including eligibility and automatic enrollment, among others. Most retirement plans are expected to have incorporated written amendments for SECURE 2.0 by December 31, 2026, with limited exceptions.
• Diversify Plan Investments — Fiduciaries with investment responsibility generally must diversify plan assets to reduce the risk of large losses. Investments should be viewed as part of the overall portfolio. As a reminder, even when this responsibility is outsourced, it is the responsibility of the plan administrator to oversee the portfolio for this purpose.
• Pay Only Reasonable Plan Expenses — Fiduciaries also need to know what the plan is paying for investments, administration, and other services. The fee needs to be reasonable for the level and quality of services received. Fees and service providers should be reviewed over time, not just when they are first selected.Fiduciaries also need to be aware of prohibited transactions. ERISA generally restricts transactions that involve self-dealing or could improperly benefit a fiduciary or another party connected to the plan.

What Responsibilities Can Be Delegated?

Plan sponsors can bring in outside professionals to handle many parts of a retirement plan. In fact, hiring an expert may be part of acting prudently when the people overseeing the plan do not have the knowledge needed for a particular issue.

Administrative work can also be outsourced. A qualified provider may handle participant notices, recordkeeping, required filings, or other day-to-day functions. The plan sponsor should know exactly what the service agreement covers as the IRS specifically advises sponsors to understand who is responsible for plan tasks and to continue reviewing provider reports and fees.

Even when fiduciary responsibility is delegated, formal oversight usually remains with the fiduciary that made the appointment. Selecting a provider is itself a fiduciary decision. Afterward, the provider should be monitored to make sure it is performing the agreed-upon services and charging the expected fees. Participant complaints and other signs of service problems should also be followed up on.

We’re Here to Help

ERISA fiduciary responsibilities can vary based on how a retirement plan is structured and how duties are divided among the sponsor, internal fiduciaries, and outside providers. Having a clear understanding of the law can help plan administrators address those responsibilities more effectively. If you have questions about the information outlined above or need assistance with your next plan audit, JLK Rosenberger can help.   For additional information, call 949-860-9902 or click here to contact us. We look forward to speaking with you soon.