29 U.S.C. § 1109 — Liability for breach of fiduciary duty

Page 529 TITLE 29—LABOR § 1110 1 So in original. This part does not contain subparts. Pub. L. 101–239, set out as a note under section 1002 of this title. Section 7894(e)(4)(B) of Pub. L. 101–239 provided that: ‘‘The amendments made by subparagraph (A) [amend- ing this section] shall take effect as if originally in- cluded in section 491(b) of the Deficit Reduction Act of 1984 [Pub. L. 98–369].’’ EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 1114(b)(15)(B) of Pub. L. 99–514 applicable to years beginning after Dec. 31, 1988, see section 1114(c)(3) of Pub. L. 99–514, set out as a note under section 414 of Title 26, Internal Revenue Code. Section 1898(i)(2) of Pub. L. 99–514 provided that: ‘‘The amendment made by paragraph (1) [amending this sec- tion] shall apply to transactions after the date of the enactment of this Act [Oct. 22, 1986].’’ EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–354 applicable to taxable years beginning after Dec. 31, 1982, see section 6(a) of Pub. L. 97–354, set out as a note under section 1361 of Title 26, Internal Revenue Code. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–364 effective Sept. 26, 1980, except as specifically provided, see section 1461(e) of this title. REGULATIONS Pub. L. 109–280, title VI, § 611(g)(3), Aug. 17, 2006, 120 Stat. 975, provided that: ‘‘No later than 180 days after the date of the enactment of this Act [Aug. 17, 2006], the Secretary of Labor, after consultation with the Se- curities and Exchange Commission, shall issue regula- tions regarding the content of policies and procedures required to be adopted by an investment manager under section 408(b)(19) of the Employee Retirement In- come Security Act of 1974 [29 U.S.C. 1108(b)(19)].’’ Secretary of the Treasury or his delegate to issue be- fore Feb. 1, 1988, final regulations to carry out amend- ments made by section 1114 of Pub. L. 99–514, see sec- tion 1141 of Pub. L. 99–514, set out as a note under sec- tion 401 of Title 26, Internal Revenue Code. Secretary authorized, effective Sept. 2, 1974, to pro- mulgate regulations wherever provisions of this part call for the promulgation of regulations, see sections 1031 and 1114 of this title. APPLICABILITY OF EXISTING REGULATIONS Pub. L. 116–260, div. BB, title II, § 202(b), Dec. 27, 2020, 134 Stat. 2899, provided that: ‘‘Nothing in the amend- ments made by subsection (a) [amending this section] shall be construed to affect the applicability of section 2550.408b–2 of title 29, Code of Federal Regulations (or any successor regulations), with respect to any applica- ble entity other than a covered plan or a covered serv- ice provider (as defined in section 408(b)(2)(B)(ii) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1108(b)(2)(B)(ii)], as amended by subsection (a)).’’ TRANSITION RULE Pub. L. 116–260, div. BB, title II, § 202(d), Dec. 27, 2020, 134 Stat. 2900, provided that: ‘‘No contract executed prior to the effective date described in subsection (e) [see Effective Date of 2020 Amendment note above] by a group health plan subject to the requirements of sec- tion 408(b)(2)(B) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1108(b)(2)(B)] (as amend- ed by subsection (a)) or by a health insurance issuer subject to the requirements of section 2746 of the Pub- lic Health Service Act [42 U.S.C. 300gg–46] (as added by subsection (c)) shall be subject to the requirements of such section 408(b)(2)(B) or such section 2746, as applica- ble.’’ APPLICABILITY OF AMENDMENTS BY PUB. L. 116–94 With respect to a group health plan subject to subsec. (h) of this section and section 4975(c) of Title 26, Inter- nal Revenue Code, as amended by section 1302(a), (b) of div. P of Pub. L. 116–94, beginning at the end of the fifth plan year of such group health plan that begins after Dec. 20, 2019, subsec. (h) of this section and section 4975(c) of Title 26 to have no force or effect, see section 1302(c) of div. P of Pub. L. 116–94, set out as a note under section 4975 of Title 26. APPLICABILITY OF AMENDMENTS BY SUBTITLES A AND B OF TITLE I OF PUB. L. 109–280 For special rules on applicability of amendments by subtitles A (§§ 101–108) and B (§§ 111–116) of title I of Pub. L. 109–280 to certain eligible cooperative plans, PBGC settlement plans, and eligible government contractor plans, see sections 104, 105, and 106 of Pub. L. 109–280, set out as notes under section 401 of Title 26, Internal Revenue Code. COORDINATION OF 2006 AMENDMENT WITH EXISTING EXEMPTIONS Any exemption under subsec. (b) of this section pro- vided by amendment by section 601(a)(1), (2) of Pub. L. 109–280 not to alter existing individual or class exemp- tions provided by statute or administrative action, see section 601(c) of Pub. L. 109–280, set out as a note under section 4975 of Title 26, Internal Revenue Code. PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989 For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code. § 1109. Liability for breach of fiduciary duty (a) Any person who is a fiduciary with respect to a plan who breaches any of the responsibil- ities, obligations, or duties imposed upon fidu- ciaries by this subchapter shall be personally liable to make good to such plan any losses to the plan resulting from each such breach, and to restore to such plan any profits of such fiduciary which have been made through use of assets of the plan by the fiduciary, and shall be subject to such other equitable or remedial relief as the court may deem appropriate, including removal of such fiduciary. A fiduciary may also be re- moved for a violation of section 1111 of this title. (b) No fiduciary shall be liable with respect to a breach of fiduciary duty under this subchapter if such breach was committed before he became a fiduciary or after he ceased to be a fiduciary. (Pub. L. 93–406, title I, § 409, Sept. 2, 1974, 88 Stat. 886.) § 1110. Exculpatory provisions; insurance (a) Except as provided in sections 1105(b)(1) and 1105(d) of this title, any provision in an agreement or instrument which purports to re- lieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this part shall be void as against public policy. (b) Nothing in this subpart 1 shall preclude— (1) a plan from purchasing insurance for its fiduciaries or for itself to cover liability or