Many Health and Welfare Trusts offered from bundled service providers have a Trustee already assigned to them whom you have probably never met. This “turn-key” non prudent approach most likely presents a conflict of interest and does not eliminate a contractors fiduciary responsibility.
A third party directed trustee assigned to a health and welfare Trust is to serve in the sole interest of the plan participants and beneficiaries. To eliminate potential conflicts, it is the contractors responsibility to ensure independence among service providers that work in the best interest of the Plan and Trust.
This approach offers a natural system of checks and balances and promotes transparency and a culture of compliance for the benefit of the plan sponsor and the sole interests of the participants.
Copyright © BH Benefits. All rights reserved.