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Fiduciary Responsibility in Benefits

Meaning

Fiduciary responsibility in benefits refers to the highest legal standard of care and loyalty required of individuals or entities entrusted with managing an employee benefit plan, particularly regarding its financial and administrative operations. This duty mandates that fiduciaries act solely in the interest of the plan participants and beneficiaries, exercising prudence, diversifying investments, and adhering strictly to the plan documents. In the realm of health and wellness, this translates to selecting and overseeing benefit offerings, including hormonal health coverage, to ensure they are high-quality, cost-effective, and administered fairly.