457 exculpatory trust language

[Guest Ralph Amadio]

Ran across language in a public 457 plan that absolves the trustee (plan sponsor) of all possible transgressions involving investments, employees, assets and possibly the kidnapping of the Lindbergh baby. This appeared to be an attempt to also qualify the plan for Jan. 1, 1999 "exclusive benefit rules".

Could we have input from our learned members of the legal profession as to the efficacy of this type of language under common and state trust laws for fiduciaries?

[Guest CVCalhoun]

Well, I think the fiduciaries are definitely off the hook for the kidnapping of the Lindberg baby!

As for the other issues, I don't even want to get into that morass. It depends heavily on such things as the extent to which the state has waived sovereign immunity, state indemnification statutes, etc. Personally, I'd rather go searching for the Lindberg baby than for a definitive answer to this one.