2 trustees in DB plan

Hi,

Thank you as always for all the insights. If a DB plan has 2 trustees (the two owners of the company and the sponsors) are they allowed to act independently of each other? Thank you.

The section of your plan document addressing the trustees' roles should address how multiple trustees can act. In my experience, many plans will allow either one to act on their own, but that's not universal. 

Even if the trust agreement allows each trustee to act distinctly:

If the plan is ERISA-governed, consider:

ERISA § 405(b) about cotrustess;

ERISA § 405(c) about allocations of responsibilities between and among fiduciaries;

ERISA § 405(d) about investment managers;

ERISA § 405(a) about a fiduciary’s responsibility regarding another fiduciary’s breach.

ERISA § 405, 29 U.S.C. § 1105 http://uscode.house.gov/view.xhtml?req=(title:29 section:1105 edition:prelim) OR (granuleid:USC-prelim-title29-section1105)&f=treesort&edition=prelim&num=0&jumpTo=true

If the plan is not ERISA-governed, consider responsibilities of cotrustees and other fiduciary relations under each State’s law that governs the trust or an agreement.

This is not advice to anyone.

The roles might not be fully laid out in the plan document so also look to see if there is a separate trust agreement that may provide additional information.  Peter's answer doesn't necessarily directly respond to the OP's question but provides great information when addressing the question as to whether one would want to be a co-trustee of an ERISA-governed trust (especially where their responsibilities and duties are not clearly delineated).

And when one reads all plan and trust documents, be on the lookout for provisions that might be invalid, or that might not have the effect a reader might discern from an isolated reading.

“[A] provision in an agreement or instrument which purports to relieve a fiduciary from responsibility or liability for any responsibility, obligation, or duty under this part [ERISA §§ 401-414] shall be void as against public policy.” ERISA § 410(a), 29 U.S.C. § 1110(a).

An ERISA-governed plan’s trustee cannot escape an ERISA-provided responsibility, including a § 405(a) responsibility regarding a cotrustee’s, administrator’s, or other fiduciary’s breach.