ERISA Issues: Rapid Fire

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What this video covers

  • Who qualifies as an ERISA fiduciary by function rather than title, including anyone with discretionary control over plan management, authority over plan assets, or investment advice for compensation
  • Why the prudent expert standard applies, not the prudent person standard, and why ignorance is never a defense
  • How ERISA judges process over outcomes, and why a market loss alone does not equal a fiduciary breach while a sloppy process does
  • What the Investment Policy Statement (IPS) contains and why it serves as contemporaneous evidence of prudence even though ERISA does not strictly mandate one
  • The four requirements for the participant-directed safe harbor: at least three diversified options with materially different risk/return profiles, transfer ability generally at least quarterly, sufficient information including notice, and independent participant control
  • How the qualified default investment alternative (QDIA) preserves safe harbor protection when participants make no election, and why capital preservation defaults expire after 120 days
  • Who counts as a party in interest, including lineal descendants of any age, and why self-dealing and kickbacks have zero reasonable compensation exception

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