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Does outgoing trustee sign trustee change amendment?


TPApril
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11/1 - One of two named trustees terminates employment with Plan Sponsor

12/1 - Company informs us they have changed trustees

Questions:

  • Can change in trustee amendment be backdated to 11/1?
  • Does outgoing trustee who is no longer employed have to sign the change in trustee amendment? (last time this was done ten years ago the outgoing trustee signed).
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Also, check the Trust provisions carefully - many say that there must be a specified advance notice (e.g. 30 days) prior to the removal being effective, unless the (soon to be former) Trustee consents in writing to earlier removal, or the employer reasonably concludes that earlier removal is necessary to protect plan assets, etc., etc...

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Also some plans say that a trustee is removed automatically if they terminate employment.  In any event, the outgoing trustee should not have to sign anything; it's the plan sponsor's call as to who is trustee.  I don't think backdating such an action really means anything, and would make it current, subject to any notice requirements as suggested by Belgarath.

Dealing with the investment company can be a different matter; they might have their own hoops to jump through.

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Agree with above. My experience is that the employer appoints and removes the trustee(s) and so it is employer and new trustee who sign amendment but (check plan/trust language) you sometimes need the removed trustee to acknowledge they are no longer trustee - whether you do that as part of the amendment or some kind of add-on or other form is up to you and/or the employer.

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In my original question, I should have typed 'effective date', not 'backdate'.

Anyway, related to this plan that has 2 Individual Trustees named in the Plan:

  • All 10 firm partners will be signing the Change in Trustee amendment (except for now terminated prior individual trustee)
  • Some insist they cannot be bothered over holiday season and will not sign until after new years
  • There is another amendment to be signed by 12/31, but only by named trustees

Pondering whether the new trustee can sign the current plan year amendment prior to adoption date of him formally being named trustee of the plan, or if just the one outstanding trustee can sign.

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