Plan Administration Commitee Membership

[Guest EEC]

Would anyone care to comment from their experience how often or how common it is to have "rank and file employees" serve on a plan adminstrative committee along side the typical HR, Finance, Treasury, management representation?

Thk's EEC

[jpod]

In my experience, very uncommon, but I have seen it.

Legally, it accomplishes nothing. Politically, it's probably a good thing, but not at the cost of having people who are not qualified to be effective in helping to carry out the Committee's mission. (Remember, the appointment of committee members is a fiduciary act.) Legally, it accomplishes nothing.

[mbozek]

Has this well meaning plan sponsor though this through. First what non mgt employee would want the personal liability that goes with being a fid?? How would the person be chosen?

Second: Does the plan sponsor want non mgt employees involved in deliberations of mgt in running the plan. Some fid duties such as plan admin and reviewing plan provisions resolving ambuigities or plan errors can be settlor issues for which the plan will rely on counsel and the fact the all communications with counsel are privleged. The rank and file ee would have to sign a pledge of confidentiality in order to be a member of the committee. Some fid duties such as determining claim requests ae not privleged but why would the sponsor want a rank & file ee involved in such issues?

Third: has anyone consulted the members of mgt who will serve on the committee to see how they would view the additon of a non mgt. eemployee?

[Guest EEC]

I appreciate your responses and I agree with your comments. We are starting to get some questions from sr mgmt, probably related to the Duke class action suit. Thx's for your time and effort.