Page 155 - NovDefComp

Understanding Fiduciary Responsibilities

Liability - What’s at Stake

• Important to know that you can be held personally liable as a plan fiduciary for any losses incurred as a

result of a fiduciary breach

• Co-fiduciary liability also applies for participating in, concealing or failing to stop the breach of another

fiduciary

• If found in violation, offenders must make good by restoring any gains obtained by improperly using plan
assets

• Violators may also be subject to other court-imposed penalties, such as:

• An excise tax of 15% of the amount of the violation,
per year, until correction

• Up to an additional 100% penalty on uncorrected
prohibited transactions
• An additional penalty of 20% if the Department of
Labor becomes involved
• And…possible imprisonment

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