Every employee benefit plan must have one or more “named fiduciaries who jointly … have the
authority to control and manage the operation and administration of the plan.”
A common plan governance arrangement is for a retirement plan to have two named
• a fiduciary responsible for administering the plan (including the hiring of a plan recordkeeper); and
• a fiduciary responsible for investing the plan’s assets (including the hiring of investment managers).
It’s common for a named fiduciary — typically, the employer (plan sponsor) or a committee of
employees of the plan sponsor — to work with an adviser in addressing plan investment duties and
responsibilities. It’s important to note that the selection of an adviser is a fiduciary act, along with
monitoring him/her, as well as decisions to retain or terminate their services.