Definition of Fiduciary

Definitions of a Fiduciary:

• A person who manages property for the benefit of another, exercises discretionary authority or control over assets and/or acts in a professional capacity of trust and renders investment advice. (Center or Fiduciary Studies)
• A person who exercises any discretionary authority or control respecting management of the Plan, renders investment advice as defined in Section 3(21) of ERISA or has any discretionary authority or responsibility regarding the administration of the Plan.  The Employer and such other individuals either appointed by the Employer or deemed to be fiduciaries as a result of their actions shall serve as Fiduciaries under this Plan and fulfill the fiduciary responsibilities described in part 4, Title 1 of ERISA.
• ERISA section 3(21):

1. Anyone who exercises authority or control over the management of a retirement plan or exercises any authority or control over the management or disposition of its assets.
2. Renders investment advice for a fee or other compensation as to any monies or other property of a plan, or has any authority or responsibility to do so.
3. Has discretionary authority or discretionary responsibility in the administration of the plan.

• A person who has the duty to transact business or handle money, not for his own benefit, but for the benefit of another.  (Pennsylvania Municipal  Pension Handbook)

There are three types of fiduciaries that you may be:  

1. Named Fiduciary:  Ones who are named in the plan document either by name or through an appointment process described in the plan.
2. Functional Fiduciary:  Anyone who acts in a fiduciary role.  This includes committee members who are appointed to oversee the plan administration and investments.
3. Investment Fiduciary: The person(s) responsible for selecting and monitoring the investment options offered to the plan participants.