401(k) Fiduciary and Non-Fiduciary Functions

ERISA’s fiduciary rules are general in nature and affect every aspect of plan administration. However, not all administrative tasks rise to a fiduciary level of execution. The lists below provide examples of fiduciary and non-fiduciary administrative tasks.

Administrative tasks that rise to fiduciary level execution:

• Authorization of 401(k) plan distributions, loans, hardship withdrawals, or any other plan transaction;
• The selection of the plan’s “qualified designated investment alternative” (QDIA);
• Receiving fees for services, screening, selection, and/or monitoring of the plan’s QDIA and/or its investment manager(s);
• Hiring of any other covered service provider(s); and
• Making any decisions taken to enforce the terms of the plan, decisions taken on participant claims for benefits, or other plan-related decisions.

Typical non-fiduciary ministerial duties:

• Calculating participant or beneficiaries benefits or credited service;
• Executing the terms of the plan on behalf of the plan sponsor;
• Preparing and delivering discretionary or required employee disclosure documents;
• Preparing and submitting drafts of required government filings;
• Documenting and maintaining plan records;
• Collecting plan contributions, accounting, and reconciling plan data;
• Processing approved claims and plan loans;
• Providing plan information, including required enrollment documents, to new participants; and
• Preparing and distributing participant or beneficiary benefit statements.