Under the ERISA plan, why are CDMS not usually considered fiduciary?

The reasoning behind why Certified Disability Management Specialists (CDMS) are not usually considered fiduciaries under the Employee Retirement Income Security Act (ERISA) is that they typically operate in an advisory capacity. This role does not entail having authority over the financial assets or making decisions that could significantly affect the plan's financial management. Instead, their focus is on providing support and guidance related to disability management rather than direct involvement in financial transactions or management.

This distinction is crucial because fiduciaries are individuals or entities that have the responsibility to act in the best interest of another party, particularly in financial matters. Since CDMS professionals are not making actual financial investment choices or managing funds, they do not meet the criteria to be classified as fiduciaries under ERISA. Their contributions are primarily supportive and administrative, emphasizing coordination and facilitation of services for individuals or organizations rather than direct financial oversight.