Can Trustee be named by job title?

[digger]

Sponsor wants to name the CEO and highest HR position as plan trustees, rather than naming names. They say they have incoming officers sign to accept trusteeship and notify departing officers of their removal as trustee. Is this ok?

I wouldn't think these officers would change very often, and they're going through the right steps anyway, so I'm not sure of their motivation to do it this way.

[CuseFan]

Their motivation may be avoiding having the trustees' names in the SPD for employees to see, but employees are going to know who the CEO, CFO, CHRO are, so nothing is really gained there. Maybe it's to avoid having to go through hassle of amending the plan whenever there is a change. I don't see anything wrong with this provided the acceptances and acknowledgements of appointment and removal are done and who is a trustee at any given point is not in any way hidden from participants.

[JamesK]

I agree with @CuseFan and have seen this practice in my experience.  Key, I think, are making sure that the current occupant of the respective offices are aware of and acknowledge their responsibilities and that the participants know or can find out who occupies those positions.

[digger]

Thanks so much, both of you. I think I'll be sending a copy of the DOL fiduciary responsibility booklet to them now and then to pass on to new officers/trustees.

[Griswold]

I think the relevant language is in Section 403(a):

"Such trustee  or trustees shall be either named in the trust instrument or in the plan instrument described in section 402(a) or appointed by a person who is a named fiduciary...."

So, if there's a named fiduciary appointing the CEO and HR head--and reappointing each time those folks are replaced--it seems like you're in the clear.

 

[RPAS]

If this is an issue, why not outsource the Trustee to a 3rd party Trustee service? This way, your organization can share responsibility with a 3rd party who is another "eye" over the plan operations, and you won't have to change your CEO and CHRO on the documents each time.