Change from participant directed acc't to trustee directed

[pgold]

Is it possible to change from a participant. directed

account to trustee directed?

If it is, what steps must be taken?

[cpc0506]

Participant Directed accounts are not a benefit right or feature that is protected. A plan sponsor can chose to go the Trustee Directed.

[MoJo]

Participant Directed accounts are not a benefit right or feature that is protected. A plan sponsor can chose to go the Trustee Directed.

I concur. The only issue is typically one of participant communications. Keep in mind as well, that under the trustee directed scenario, whatever protections ERISA 404© provides (and what, if any, those are is the subject of another discussion) would no longer apply, and the trustee has full fiduciary responsibility for investment decision making. In my mind - not bad at all (if they know what they are doing), and virtually every study I have seen confirms that professionally managed plan portfolios outperform participant directed ones.

[cpc0506]

Also removes the need to provide 404a5 notices.

[Jim Chad]

As for what steps:

Amend document to remove participant direction is the only thing i can think of. Also, tell the employees ahead of time if they are going from quarterly to annual statments.