Labor Department Council to Investigate Outsourcing of Benefits

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.

To contact the reporter on this story: Kristin N. Washington in Washington at kwashington@bna.com.

To contact the editor on this story: Christine Pulfrey at cpulfrey@bna.com.