|- ERISA Fiduciary Advisor|
Is hiring a service provider a fiduciary function, and if so, what do I need to do?
Hiring a service provider is in and of itself a fiduciary function. An employer should document its selection and monitoring process. When considering which service provider to hire, the employer should provide each with complete and identical information about the plan and what services it is requesting so that the employer can make a meaningful comparison.
An employer should ask each provider for:
If the employer uses an internal administrative committee, it should educate committee members on their roles and responsibilities.
Monitoring a service provider
Fiduciaries are also required to monitor the service provider. An employer should establish and follow a formal review process at reasonable intervals to decide whether to continue using the current service providers or look for replacements.
When monitoring service providers, the employer should:
Additional resources that may be useful in hiring and monitoring a service provider include: