The decision occurred in connection with a motion to dismiss (which, for these reasons, was denied). Despite the preliminary nature of the decision, in-house fiduciaries need to evaluate whether terms in their contracts with administrators can lead to fiduciary status. If they do, the in-house fiduciaries may need to heighten their level of oversight of the administrators to ensure that the fiduciary breaches of the administrators do not lead to co-fiduciary liability for the in-house fiduciaries.
On a practical note, the risk just mentioned can be handled by adding a section to the fiduciary compliance checklist that all in-house fiduciaries should consider having. A checklist provides a roadmap for fiduciary compliance and a record that the fiduciaries are being prudent in their activities.