Question

ERISA 404(a)(1): (A), (B), (C), and (D) establish the standards for __________.

1) Fiduciaries
2) Vesting
3) Coverage and participation
4) Loans

Answer 1

ERISA 404(a)(1): (A), (B), (C), and (D) establish the standards for fiduciaries, including acting in participants' interests, acting with care and prudence, diversifying investments, and following plan documents.

Step-by-step explanation:

ERISA 404(a)(1): (A), (B), (C), and (D) establish the standards for fiduciaries. These subsections of the Employee Retirement Income Security Act (ERISA) set forth the fiduciary responsibilities that those managing pension plans and other retirement accounts must adhere to. The main principles are:

• (A) requires fiduciaries to act solely in the interest of the plan's participants and beneficiaries.
• (B) mandates that fiduciaries act with the care, skill, prudence, and diligence that a prudent person would exhibit.
• (C) involves diversifying the plan's investments to minimize the risk of large losses.
• (D) requires following the plan documents, as long as they are consistent with ERISA.

These standards are crucial for protecting the interests of the employees and ensuring that the people in charge of managing their retirement funds are held to rigorous legal and ethical standards.