Labor Department Council to Investigate Outsourcing of Benefits

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The ERISA Advisory Council is to examine outsourcing of employee benefits and then draft recommendations for consideration by the labor secretary, the council said in its 2014 issue statement . No uniform analytical framework exists for understanding outsourcing , particularly in the context of fiduciary services, and failure by plan sponsors and other employer fiduciaries to understand the allocation of legal responsibilities and risks assumed under a contract and the Employee Retirement Income Security Act may lead to misunderstandings and disputes between plan sponsors and service providers, it said.

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