Plan Expense . . . Legit?

[Guest MC2]

A Trustee of a Multiemployer Pension Plan is also a member of the Local Union. The Trustee seeks to have the time his spends working on plan matters at the Local Union Office reimbursed by the Plan to the Local Union. Is this expense legitimate?

[SoCalActuary]

Is the trustee a professional trustee, based on education and prior experience?

Does the trust document permit trustee compensation?

Are the fees reasonable for the service provided?

Does the trustee exempt themselves from voting on this issue to avoid conflict of interest?

Is this transaction intended to benefit the union? Can the union show that the trustee

has caused to to incur extra expense to replace the duties not performed by the trustee

while working on the plan?

Just wondering.

[Bill Ecklund]

If he is a full time employee of a sponsoring union, he cannot receive compensation for being a trustee except for reimbursement of actual reasonable expenses incurred by or for him. (ERISA sec. 408©(2))