How often should Plan Trustees meet?

[TPAnnie]

All I can find is that they should "meet on a regular basis, keep minutes and document the basis for all decisions.

What constitutes a "regular basis"? Any sites?

Thanks!

[Mike Preston]

Pet peeve: cites (short for citations).

No cites that I'm aware of but any reasonable definition should suffice. How about the first order of business at the first meeting being the establishment of the frequency of future meetings? Such criteria as frequent enough to ensure timely decisions regarding Trustee responsibility along with the criteria for accelerating the frequency in special circumstances sounds about right to me.

[jpod]

You didn't say what the Trustees' roles are here? Is this a pooled plan for which they select plan investments or plan investment managers? Is this a self-directed plan and they are responsible for selecting the plan menu (rather than some other committee appointed by the Plan Sponsor)? Or, are they really nothing more than the legal title holders of plan assets who aren't responsible for doing much of anything?

[TPAnnie]

I'm sorry, cites.

The plan is self-directed, with an investment consultant at a large investment company that does very detailed plan accounting as well. The trustees finalize the investment choices as suggested by the investment consultant.

[Mike Preston]

Then as long as there is recognition of appropriate triggers which can cause them to call an ad-hoc meeting on reasonably short notice I would be comfortable with annual scheduled meetings.

[QDROphile]

The consultant's contract should include responsibility for ongoing monitoring of the investment option menu and notice to the trustees of any development that would be reason for special attention to the option before the next regular meeting. Examples include a material change in the manager of the fund and any fundamentals of the fund.

[ESOP Guy]

Remember the trustees need to follow the Prudent Man rule under ERISA. They must ask in a prudent manner and expert (I think there is a presumption of being an expert) would in these situations.

I also believe that even if they hire people fiduciary responsibilities can't be outsourced. They should at least regularly monitor the consultant's job to make sure they are in compliance with the contract's terms.

But because of the Prudent Man rule I think this will always be a facts and circumstances standard and there won't be a hard and fast rule on how often to meet.