According to Employee Retirement Income Security Act of 1974 (ERISA) fiduciary standards, benefit plans are operated for:

The correct answer emphasizes that under the fiduciary standards set forth by the Employee Retirement Income Security Act of 1974 (ERISA), benefit plans must be operated for the exclusive purpose of providing benefits to plan participants and their beneficiaries. This means fiduciaries are required to act in the best interests of both the individuals who participate in the plan (participants) and those who are entitled to receive benefits due to the participants’ status (beneficiaries).

This dual focus ensures that fiduciaries prioritize the financial security and interests of both groups, reflecting ERISA's intent to protect the rights of individuals in retirement and health plans. The emphasis on participants and beneficiaries highlights the act's protective nature; it underscores the necessity for fiduciaries to avoid conflicts of interest and to operate solely for the benefit of those involved, reinforcing the responsibility to uphold the integrity of the plans.

While the options mentioning plan sponsors and employees include relevant parties in the broader context of benefit plans, they do not capture the core principle of ERISA's fiduciary responsibility as effectively as the correct choice does. The goal of these standards is to center the right protections on those who rely on the benefits provided by the plans, rather than on the interests of the employers or sponsors.