fiduciary
As defined by the Employee Retirement Income Security Act (ERISA), an individual
or corporation that: (1) exercises any discretionary authority or discretionary
control in managing a pension or benefit plan or exercises any authority or
control in managing or disposing of its assets; (2) renders investment advice
for a fee or other compensation, with respect to any monies or other property
belonging to the plan; or (3) has any discretionary authority or responsibility
in administering the plan. ERISA, which was passed in 1974, not only formalized
the law associated with the administration of employee pension and benefit plans;
it also broadened the scope of such liability so that it became a "personal"
rather than simply a "corporate" liability. The effect of this change was that
soon after ERISA's enactment, insurance companies began offering fiduciary liability
insurance policies, which were specifically designed to cover this newly legislated
exposure.
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PLI XII.C