What is a typical plan governance structure for a plan sponsor?
faq 2020-01-15

Every employee benefit plan must have one or more “named fiduciaries who jointly … have the

authority to control and manage the operation and administration of the plan.”

A common plan governance arrangement is for a retirement plan to have two named

fiduciaries, including:

• a fiduciary responsible for administering the plan (including the hiring of a plan recordkeeper); and

• a fiduciary responsible for investing the plan’s assets (including the hiring of investment managers).

It’s common for a named fiduciary — typically, the employer (plan sponsor) or a committee of

employees of the plan sponsor — to work with an adviser in addressing plan investment duties and

responsibilities. It’s important to note that the selection of an adviser is a fiduciary act, along with

monitoring him/her, as well as decisions to retain or terminate their services.

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