(a) Fiduciary duty. A fiduciary must discharge his
or her duties with respect to a plan solely in the interest of the
participants, and:
(1) for the exclusive purposes of:
(A) providing benefits to participants; and
(B) defraying reasonable expenses of administering
the plan;
(2) with the care, skill, prudence, and diligence under
the circumstances then prevailing that a prudent person acting in
like capacity and familiar with such matters would use in the conduct
of an enterprise of a like character and with like aims; and
(3) in compliance with the documents and instruments
governing the plan so long as those documents and instruments are
consistent with this subchapter and with all other applicable state
and federal laws.
(b) Transactions between fiduciary and plan. A fiduciary
in its transactions with respect to the plan and trust must not:
(1) deal with plan assets in its own interest or for
its own account;
(2) act on behalf of or represent a person whose interests
are adverse to the interests of the plan or the interests of its participants;
or
(3) receive any consideration from any party dealing
with the plan and trust in connection with a transaction involving
plan assets.
(c) Plan and trust expenses. All expenses of the plan
and trust must be paid from plan assets. Expenses include but are
not limited to:
(1) administration of the plan and trust; and
(2) the plan and trust's reasonable expenses incurred
to comply with this subchapter, including contracting for stop-loss
insurance, fidelity coverage, and errors and omissions insurance.
(d) Voluntary termination of trust. The trust agreement
must provide for the distribution of plan assets on dissolution of
the trust. The distribution of assets must be consistent with of the
Employee Retirement Income Security Act of 1974, 29 U.S.C. §1103
and §1104, concerning Fiduciary Duties, and related guidance
by the U.S. Department of Labor. The trust's assets may not be distributed
until the commissioner has canceled the approved PEO's certificate
of approval under Division 8 of this title (relating to Market Exit).
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