What must a plan fiduciary do to comply with ongoing duties regarding service providers?

A plan fiduciary's primary responsibility is to ensure that the plan is being managed in the best interests of the participants and beneficiaries. This includes a commitment to oversee service providers effectively. Regularly assessing service performance is critical because it allows the fiduciary to evaluate whether the services being provided align with the plan's goals and expectations, as well as to determine if the fees being charged are reasonable in relation to the services rendered. This ongoing assessment is necessary to maintain compliance with the fiduciary duty of prudence and to ensure that the plan is receiving value for the services it pays for.

Engaging in performance assessments is important not only for legal compliance but also for the proper governance of the plan. It helps identify potential issues early on, ensures that the service providers continue to meet the standards required by the plan, and provides a basis for any necessary discussions regarding contract terms or fee adjustments. By doing so, fiduciaries can fulfill their obligation to make informed decisions while managing relationships with service providers, helping to safeguard the interests of plan participants.