Most plan sponsors genuinely want to do the right thing. They offer a retirement plan because they care about employees, want to help people save, and believe they are acting responsibly. That instinct is admirable—but under ERISA, it is not a defense.
Fiduciary responsibility is not measured by intent. It is measured by process.
Courts and regulators don’t ask whether an employer meant well. They ask whether the sponsor followed the plan document, monitored providers, corrected errors, and made informed decisions based on available information. A sponsor can act in complete good faith and still violate fiduciary duties by failing to follow through on those obligations.
This disconnect surprises many employers. They remember approving improvements, responding to employee questions, and trusting experienced providers. What they don’t always realize is that ERISA looks backward and objectively. Good intentions don’t excuse missed deposits. Caring about employees doesn’t cure an eligibility failure. Trusting a provider doesn’t eliminate the duty to monitor.
That doesn’t mean sponsors need to become paranoid or adversarial. It means they need to be disciplined.
Strong fiduciary practices are not complicated, but they are deliberate. Documenting decisions. Asking follow-up questions. Keeping meeting notes. Confirming who is responsible for what. Addressing problems when they first appear instead of hoping they resolve themselves.
Ironically, the sponsors who are best protected are often the ones who slow down. They don’t rush decisions to appear decisive. They don’t accept verbal assurances without written confirmation. They treat the retirement plan as an ongoing governance responsibility—not a benefit that runs itself.
Being a good employer matters. It just isn’t enough.
Good employers build trust with employees. Good fiduciaries build a record that survives scrutiny.
The strongest plan sponsors understand they must do both.
