Plan configuration question - is this a master trust?

Hello - I'm running into a question with a plan audit that I am looking for assistance with. Any guidance would be greatly appreciated. Thank you.

Facts:

There are multiple defined contribution retirement plans sponsored by the same plan sponsor within one contract at John Hancock Life Insurance Company (a group annuity contract). The investments are pooled.

Question:

Should plans configured this way have a master trust agreement and follow the master trust reporting requirements for Form 5500's? If the answer is no, is there any guidance or rule that explains this?

This sounds problematic.  Usually it results in fees being uneven from plan to plan which can create issues from a fiduciary perspective.  If one plan is supplementing another's fees it can create a "sole benefit" issue.  It could be a MEP or a PEP or some sort of omnibus investment only account that another recordkeeper is recordkeeping, or some other passable arrangement but from the limited description it sounds problematic. 

Gina Alsdorf

Sharholder, Carlton Fields

www.carltonfields.com

galsdorf@carltonfields.com

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