29 U.S.C. § 1104 : US Code - Section 1104: Fiduciary duties

Search 29 U.S.C. § 1104 : US Code - Section 1104: Fiduciary duties

(a) Prudent man standard of care
(1) Subject to sections 1103(c) and (d), 1342, and 1344 of this
title, a fiduciary shall discharge his duties with respect to a
plan solely in the interest of the participants and beneficiaries
and -
(A) for the exclusive purpose of:
(i) providing benefits to participants and their
beneficiaries; and
(ii) defraying reasonable expenses of administering the plan;
(B) with the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent man acting in a like
capacity and familiar with such matters would use in the conduct
of an enterprise of a like character and with like aims;
(C) by diversifying the investments of the plan so as to
minimize the risk of large losses, unless under the circumstances
it is clearly prudent not to do so; and
(D) in accordance with the documents and instruments governing
the plan insofar as such documents and instruments are consistent
with the provisions of this subchapter and subchapter III of this
chapter.
(2) In the case of an eligible individual account plan (as
defined in section 1107(d)(3) of this title), the diversification
requirement of paragraph (1)(C) and the prudence requirement (only
to the extent that it requires diversification) of paragraph (1)(B)
is not violated by acquisition or holding of qualifying employer
real property or qualifying employer securities (as defined in
section 1107(d)(4) and (5) of this title).
(b) Indicia of ownership of assets outside jurisdiction of district
courts
Except as authorized by the Secretary by regulations, no
fiduciary may maintain the indicia of ownership of any assets of a
plan outside the jurisdiction of the district courts of the United
States.
(c) Control over assets by participant or beneficiary
(1) In the case of a pension plan which provides for individual
accounts and permits a participant or beneficiary to exercise
control over the assets in his account, if a participant or
beneficiary exercises control over the assets in his account (as
determined under regulations of the Secretary) -
(A) such participant or beneficiary shall not be deemed to be a
fiduciary by reason of such exercise, and
(B) no person who is otherwise a fiduciary shall be liable
under this part for any loss, or by reason of any breach, which
results from such participant's or beneficiary's exercise of
control.
(2) In the case of a simple retirement account established
pursuant to a qualified salary reduction arrangement under section
408(p) of title 26, a participant or beneficiary shall, for
purposes of paragraph (1), be treated as exercising control over
the assets in the account upon the earliest of -
(A) an affirmative election among investment options with
respect to the initial investment of any contribution,
(B) a rollover to any other simple retirement account or
individual retirement plan, or
(C) one year after the simple retirement account is
established.
No reports, other than those required under section 1021(g) of this
title, shall be required with respect to a simple retirement
account established pursuant to such a qualified salary reduction
arrangement.
(3) In the case of a pension plan which makes a transfer to an
individual retirement account or annuity of a designated trustee or
issuer under section 401(a)(31)(B) of title 26, the participant or
beneficiary shall, for purposes of paragraph (1), be treated as
exercising control over the assets in the account or annuity upon -

(A) the earlier of -
(i) a rollover of all or a portion of the amount to another
individual retirement account or annuity; or
(ii) one year after the transfer is made; or
(B) a transfer that is made in a manner consistent with
guidance provided by the Secretary.
(d) Plan terminations
(1) If, in connection with the termination of a pension plan
which is a single-employer plan, there is an election to establish
or maintain a qualified replacement plan, or to increase benefits,
as provided under section 4980(d) of title 26, a fiduciary shall
discharge the fiduciary's duties under this subchapter and
subchapter III of this chapter in accordance with the following
requirements:
(A) In the case of a fiduciary of the terminated plan, any
requirement -
(i) under section 4980(d)(2)(B) of title 26 with respect to
the transfer of assets from the terminated plan to a qualified
replacement plan, and
(ii) under section 4980(d)(2)(B)(ii) or 4980(d)(3) of title
26 with respect to any increase in benefits under the
terminated plan.
(B) In the case of a fiduciary of a qualified replacement plan,
any requirement -
(i) under section 4980(d)(2)(A) of title 26 with respect to
participation in the qualified replacement plan of active
participants in the terminated plan,
(ii) under section 4980(d)(2)(B) of title 26 with respect to
the receipt of assets from the terminated plan, and
(iii) under section 4980(d)(2)(C) of title 26 with respect to
the allocation of assets to participants of the qualified
replacement plan.
(2) For purposes of this subsection -
(A) any term used in this subsection which is also used in
section 4980(d) of title 26 shall have the same meaning as when
used in such section, and
(B) any reference in this subsection to title 26 shall be a
reference to title 26 as in effect immediately after the
enactment of the Omnibus Budget Reconciliation Act of 1990.