Role of the pension plan administrator
The plan administrator's role is to ensure the management of the pension fund and the day-to-day administration of the pension plan. To do so, the administrator must:
- take the necessary steps to protect the benefits of the plan's members and beneficiaries
- conserve and enhance pension fund assets
- ensure that a number of duties are carried out, such as the payment of contributions to the pension fund and membership of eligible employees in the plan.
Its role can be compared to that of a company's board of directors: it must make strategic decisions about the plan and its administration as well as perform supervisory and risk-control activities.
The role of the administrator is different from that of the employer. Generally, the employer or the employer and the union have the power to amend or terminate the plan. The employer is also responsible for the funding of a defined benefit plan.
The administrator must understand...
To learn more about the administrator's role and how to confer duties to capable persons, refer to Instalment 2 of the collection Administering a pension plan well.