Jump to content

Using one plan to subsidize expenses of another plan.


Guest M. Van Dyke

Recommended Posts

Guest M. Van Dyke

What are the rules about using assets from one 401(a)plan to pay the plan expenses of another 401(a)plan? I have recently noticed two incidences of public employee retirement systems using assets from their db plan for full-time employees to subsidize the costs of development and administration of a new dc and cash balance plan for part-time, seasonal, and temporary employees.

Link to comment
Share on other sites

  • 1 month later...
Guest Joehoho7

Interesting observation. I notice the same thing happening in my home state with a large public retirement system in California. Seems like there should be some law prohibiting the assumption of liabilities by another plan, but might be ERISA based.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...