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Who Is Responsible for Mistakes by Service Providers?
The Retirement Plan BlogLink to more items from this source
May 18, 2015

"The [Sixth Circuit Court of Appeals] concluded that the ERISA statutory penalty could not be assessed against United because it applies only to the 'Plan Administrator,' not just any service provider.... This case reflects the real world in that the plan sponsor is almost always the 'Plan Administrator' with ultimate responsibility for plan operations. It follows that plan sponsors, as fiduciaries, could be saddled with liability for the conduct of non-fiduciary plan service providers." [Butler v. United Healthcare of Tennessee, No. 13-6446 (6th Cir. Aug. 22, 2014)]

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