In a top hat employee benefit plan, fiduciary duties apply as which standard?

• A. De novo review only
• B. Always defer to plan administrator
• C. No fiduciary duties apply
• D. Either De novo review or defer to plan administrator decision unless it's unreasonable

Answer: (D)

Fiduciary-review standard in ERISA plans depends on whether the plan documents grant the administrator discretion to determine eligibility or benefits. If the plan gives that discretionary authority, courts apply a deferential standard (abuse of discretion); the administrator’s decision is upheld as long as it is reasonable. If there is no discretionary authority, the court reviews the decision de novo, examining the matter anew without giving deference. Regardless of the path, an unreasonable decision won’t be sustained. So the correct approach is that the standard can be either de novo or deferential, depending on the plan’s language, with an unreasonable result being outside the permissible scope.