Using one plan to subsidize expenses of another plan.

[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.

[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.