Compensation for Advisory Committee Members

[Medusa]

Just about every plan I've ever seen has stated that Advisory or Administrative Committee members shall serve without compensation. However, I have a couple of situations where some of the comittee members are not currently on the employer's payroll. They are retirees, and they have asked whether it is permissable for them to receive compensation for their services.

I cannot find anything precluding their receiving reasonable compensation, although there is that worrisome plan language about serving without compensation, that must have come from somewhere. Anyone know WHERE?

[QDROphile]

ERISA regulation section 2550.408c-2

[Medusa]

Thanks QDROphile, but I guess I'm not seeing where that regulation prohibits payment of such compensation. The individuals we're dealing with are not receiving compensation from the employer or anyone else.

[QDROphile]

I did not suggest that that the regulation required one thing or another in your situation. I identified it as the source of plan language that you have seen on the subject, as you requested.

The regulation and its principles need to be considered in evaluating what is appropriate in any particular circumstances. The plan language must be considered also, whether or not the plan language is more restrictive than the law allows.

[Medusa]

OK. I am more interested in the legal restrictions than in the plan restrictions. The plan can be changed.