A qualified plan fiduciary's failure to comply with ERISA's requirements makes them personally liable for losses to the plan. True or False?

A fiduciary of a qualified plan is held to a high standard under the Employee Retirement Income Security Act (ERISA). This law establishes specific responsibilities and obligations for fiduciaries, which include acting solely in the interest of plan participants and beneficiaries, adhering to the plan documents, and exercising prudence in decision-making.

If a fiduciary fails to comply with ERISA's requirements, they may indeed face personal liability for any losses that occur as a result of their misconduct or failure to act in accordance with ERISA’s mandates. This liability can encompass monetary damages, and fiduciaries may be required to restore any losses to the plan.

The key aspect here is that ERISA imposes strict fiduciary duties, and a breach of those duties directly correlates with personal liability. Therefore, whether a fiduciary acts with gross misconduct or simple negligence, failing to uphold ERISA requirements leads to personal accountability for the financial well-being of the plan, solidifying the point that the statement is true.