Notification of fees from pooled trust account

[BG5150]

Profit Sharing plan's trust is in a pooled account.

Balance forward valuation.

Plan Sponsor now wants to take plan expenses from the trust. The expenses are justified and eligible to be paid from the assets.

What kind of notification (if any) is due to the participants?

[Belgarath]

I'm not certain that anything new is actually required. However, if the original SPD didn't specify that Plan expenses may be paid from the Plan, I'd sure do a SMM. But perhaps I'm beong overly cautious.

[QDROphile]

You have another issue if the sponsor is paying the expenses and getting reimbursed rather than having the plan pay expenses directly. See PTE 80-26.

If the sponsor has been paying expenses and is discontinuing, it may change the ERISA reg. 404a-5 disclosure.

[Bird]

I don't think any notification is required, period.

[John Feldt ERPA CPC QPA]

404a5 would not apply since this is not a participant-directed plan.

[Bird]

I don't think any notification is required, period.

I'll clarify my own answer...no notification is required to participants for the reason noted. I think the trustee must be notified under 408(b)(2), and I think an invoice is sufficient notice.