Defined terms for the annuity market and lifetime income landscape.
The fiduciary standard is the legal duty requiring a professional who provides advice or exercises discretion over another party's assets to act in that party's best interest, disclose material conflicts, and exercise the skill and prudence appropriate to the responsibility.
A fiduciary breach is a failure by an ERISA plan fiduciary to satisfy one or more of the fiduciary duties imposed by ERISA — most commonly the duties of loyalty, prudence, diversification, or adherence to plan documents — exposing the fiduciary to personal liability for participant losses.
The fiduciary safe harbor for annuity selection is the statutory protection under ERISA Section 404(e) — added by the SECURE Act — that shields a plan fiduciary from liability for insurance carrier selection when specified due diligence procedures are followed.
