Definition of trustee

[Guest Lorna Pate]

I am new to this area so forgive me for asking fundamental questions but...under ERISA, what is the definition of a trustee? Under a self-funded plan, is the trustee always the employer? or the plan administrator? or both? Can a trustee be something or someone else than these two entities?

I would be greatly appreciative if a citation could be provided.

[Kathy]

The trustee is appointed as such by the trust document and must accept the position and related responsibilities by signing the trust document which spells them out. It can be a bank, the employer, a group of employees, or another type of paid trustee.

This is probably only part of the answer so hopefully more will add to it.

[Kirk Maldonado]

If the employer is a corporation, you need to make sure that it has the power to act as a trustee under applicable state law. For example, a corporation cannot act as trustee under California law (unless it is a financial institution).