Fiduciary Responsibilities for Employers

The U.S. Department of Labor has a publication for employers explaining the fiduciary obligations that come with sponsoring an employee group health plan. The booklet, Understanding Your Fiduciary Responsibilities Under a Group Health Plan, addresses the scope of ERISA protections for health plans. This guidance applies to plans subject to ERISA and does not cover private sector or group plans.

Many actions related to operating a group health plan have fiduciary implications, particularly if the actions involve discretionary decision making under the plan. Some employer decisions result in fiduciary actions and others do not. Fiduciaries have important responsibilities and must follow standards of conduct to act in the interest of plan participants and beneficiaries,

The helpful booklet provides information about

• The elements of a group health plan;
• Who is considered a plan fiduciary;
• The significance of being a plan fiduciary;
• A description of prohibited transaction;
• Employer reporting obligations; and
• Tips for employers.

A copy of the publication may be accessed by clicking here.

Employers should review the booklet to understand the responsibilities that come with sponsoring a group health plan for employees.