Most people tend to think that because their employers contribute money that goes into their retirement plan that they play the most significant role. However, in order to ensure your plan’s assets are managed adequately throughout your life, other essential functions need to step up to make sure tasks around your investments are done correctly, and your money is protected. For these reasons, some consider the plan’s trustee to be one of the most essential roles.
A trustee is someone responsible for the investments that are held by the plan. Their primary function is to act in the best interest of the plan’s participants, which they carry out by these specific duties:
A trustee plays an extremely vital role in the management of your plan. They not only have the ability to exercise authority over the plan’s assets but also have the added responsibility of being the plan’s administrator. Their role is not only critical but comes with a lot of discretion and responsibility.
Have more questions about retirement administration? Schedule a plan discussion with us or take 30 seconds to find which plan is best for your company with the retirement plan evaluator.
Sources:
What is a Trustee? Your Fiduciary Duties. (2015). By Beth Harrington. Benefit Resource Inc.