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An ERISA fiduciary must act in your best interests

On Behalf of | Feb 24, 2021 | Employee Benefits & ERISA

Saving for retirement through your employer, via a 401(k) or a similar plan, can be a very wise financial choice.

It’s something you settle on because you want to be prepared for the future. You trust the fiduciary to help you get the best possible returns. 

Bound by law to your interests

Legally speaking, your trust is well placed. The duty that the law puts on fiduciaries is heavily in your favor, as they are bound to act in your best interests at all times. You deserve to know that this is the type of treatment both you and your retirement fund are going to get. 

The unfortunate reality, though, is that this duty is often breached. Examples of breaches include fiduciaries who: 

  • Make illegal transactions
  • Prop up misleading statements and inflated stocks
  • Create duplicate expenses — through the use of multiple record keepers, for instance
  • Do not consider the options that would help you most and offer lower costs
  • Do not get competitive bids

For example, records need to be kept and other administrative tasks must happen with regards to your account. These can come with a cost. That in itself is fine, but it’s why the fiduciary needs to obtain those competitive bids. If they fail to do so, they pass potentially higher costs on to you. While you trusted them to help you increase your returns, they’re actually lowering the value of your account. 

Moving forward after mistakes made by another’s negligence

Do you have any questions about how to move forward when a fiduciary did not put your best interests first? If so, our website can provide a lot of helpful information about the process and your options.