Allocating Risks & Responsibilities for Pension Plan Sponsors and Their Service Providers

Article by Jeremy Forgie, ©2005 Blake, Cassels & Graydon LLP

This article was originally published in Blakes Bulletin on Pensions - February 2005

One consequence of the ever-increasing volume of litigation in the pension area is a clear trend towards more formal documentation of plan sponsor and service provider relationships and, within that documentation, an increasing focus on limitation of liability.

Limitation of liability provisions, including exculpatory clauses and indemnities, have been a relatively common feature for many years in pension trust and custodial services agreements. Now these provisions are being included in professional service provider contracts required by actuaries, auditors and investment managers.