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Group Benefit Fiduciary Standard

Meaning

The Group Benefit Fiduciary Standard represents the elevated legal and ethical benchmark applied to individuals and entities responsible for the administration and oversight of employer-sponsored health and welfare plans. This standard mandates that fiduciaries act with undivided loyalty and exercise the utmost prudence solely for the benefit of the plan participants and their beneficiaries. It requires an objective, documented decision-making process concerning the selection, cost, and quality of all offered benefits. Adherence to this standard is a critical regulatory requirement under federal law, particularly ERISA.