An individual authorized to make decisions regarding pension plan investments is a fiduciary (B). Under ERISA principles, a fiduciary is anyone who exercises discretionary authority or control over plan management, assets, or administration. This designation is functional, meaning it is based on actions taken—not job title.
Fiduciaries are legally obligated to act solely in the interest of plan participants and beneficiaries, with duties of loyalty, prudence, diversification, and adherence to plan documents. Investment decisions—such as selecting funds, monitoring performance, or hiring investment managers—are core fiduciary responsibilities.
Directors (A) may or may not be fiduciaries, depending on their role. A trust executor (C) administers estates, not retirement plans. A valuation expert (D) provides technical analysis but does not make discretionary decisions.
SPHR exam content emphasizes fiduciary accountability and personal liability exposure for breaches. HR leaders must understand who is a fiduciary and ensure proper training, documentation, and governance to reduce risk.
References :
HRCI SPHR Exam Content Outline — Functional Area: Total Rewards (retirement plans; fiduciary responsibility).
HRCI SPHR Study Guide — ERISA fiduciary standards and obligations.
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