Fiduciary Services…

for Selection of an Annuity Provider

QAS performs “named fiduciary” level services (select an annuity provider) to assist trustees in meeting their obligations to participants. QAS understands the importance of this decision and supports its services with proprietary documentation which demonstrates adherence to Procedural Prudence as defined by ERISA.

For highlights to the ERISA Named Fiduciary role, click here: ERISA Rules

Procedural Prudence…the Appropriate Standard

A fifth circuit court held that ERISA “Procedural Prudence” is the appropriate standard for selecting annuity providers. Bussian1 found the “safest annuity” standard of Interpretive Bulletin IB 95-1 to be “instructive”. The appropriate standard is the fundamental fiduciary duty requirements of ERISA. QAS developed its protocol to adhere specifically to “Procedural Prudence” per Bussian and our ERISA fiduciary role has been vetted by written opinions:

  • Mr. Alfred A. Turco, Esq. of McElroy, Deutsch, Mulvaney & Carpenter, LLP

Opinions found that trustees who retain QAS:

  • transferred the selection responsibility to QAS
  • meet requirements of ERISA:
    • QAS is a Plan Fiduciary within the meaning of ERISA § 3(21)(A)(i)
    • QAS is an “ERISA named fiduciary” to select the annuity provider
    • QAS role as “ERISA named fiduciary” is explicit in its agreements
    • trustee’s monitor the selection process
    • ERISA named fiduciary status exists due to QAS’ function, not its being named for selection of an annuity provider

To read more about Bussian, click here: Procedural Prudence Standard

1Bussian v. RJR Nabisco., Inc., 223 F. 3d 286, (5th Cir. 2000) (“Bussian”)