Jump to content

Post Termination Revenue Sharing

Ed Proulx

Recommended Posts

A DC plan terminates and pays out all benefits. AFTER all benefits have been paid out, the custodian (thank you very much) credits revenue sharing to us (we are both fiduciary advisor and recordkeeper).

The amount of the revenue sharing received does not cover the cost to distribute it - not that this matters philosophiclaly, but practically, it carries weight.

Of course, nobody wants to deal with this, not us, not the plan sponsor - we, however have to.

Eagerly await your enlightened comments and opinions.

Link to comment
Share on other sites

With all of the plan expenses already paid, this may provide some help:


The last paragraph before the Conclusion section reads:

It is the view of the Department that compliance with ERISA’s fiduciary rules generally will require that a fiduciary accept a distribution of settlement proceeds. The Department recognizes, however, that in rare instances the cost attendant to the receipt and distribution of such proceeds may exceed the value of such proceeds to the plan’s participants. In such instances, and provided that there is no other permissible use for such proceeds by the plan (e.g., payment of plan administrative expenses), it might be appropriate for a plan fiduciary to not accept the settlement distribution.
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...