Fiduciary Governance

Your status as a fiduciary entails an unprecedented level of responsibility


When you add the fact that you can be held personally liable as a fiduciary, the aspect of this is daunting to say the least. Rare is the sponsor who thoroughly understands this responsibility, fulfills it and has the proper proof of documentation, let alone the time to get all of this done. Enza understands this and we aim to take the worry out of navigating through these complex matters. How? First we serve as a co-fiduciary of the plan which helps to reduce your risk. We develop and implement a comprehensive governance process to help you oversee all the responsible parties. This achieves two important objectives:

  • A prudent process limits personal liability by showing compliance with fiduciary duties
  • By documenting processes for making fiduciary decisions, a fiduciary can demonstrate compliance with the duty of prudence.

The DOL has made it clear that a fiduciary’s duties under ERISA are related to “the process used to carry out the plan functions rather than simply the end results”.* This prudent process consists of:

  • Formation of an investment committee
  • Fiduciary education for committee members
  • Creation and monitoring the Investment Policy Statement
  • Hiring and monitoring service providers
  • Selecting and monitoring investment options
  • Diversifying the plan’s investments
  • Documenting all committee decisions
  • Maintaining a fiduciary vault with all pertinent records
  • Determination that the compensation being charged is reasonable
  • Annual plan review
  • Compliance support
  • Fidelity bond and fiduciary liability insurance reviews

Enza believes that establishing, implementing and monitoring a prudent process may be the most valuable tool fiduciaries have to carry out their duties under ERISA.

Our knowledgeable team can guide you through these hurdles.

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*“Profit Sharing Plans for Small Businesses”, the Department of Labor, available to view here.
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