Deep Dive on Service Agreements

American Bar Association Joint Committee on Employee Benefits [JCEB]

Drafting contracts for ERISA employee benefit plans is more legally complex than the contracting process that lawyers may have experience with, given the standards imposed by years of guidance and case law under ERISA. Negotiating these contracts raise many ERISA-focused issues, including whether a statutory fiduciary standard of care applies, the standard of care if it doesn't, indemnification, termination and fee disclosure. The process is further complicated by the complex and opaque nature of the arrangements, particularly when contracting with the prescription benefit manager industry, preferred provider networks and for alternative investment structures.

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