Administering a defined benefit pension plan
A defined contribution plan is generally administered by a pension committee, which is the first responder for the plan and must ensure that the plan is in conformity with the relevant laws.
The pension committee is responsible for the administration of the plan and the management of the pension fund. Furthermore, it has an important role to plan in providing information to plan members. It must act with prudence, diligence and competence, like any reasonable person.
Sometimes the administrator is not a pension committee
A plan with less than 26 members and beneficiaries can be administered by the employer. In that case, the employer has the same obligations and responsibilities as a pension committee.
Who can provide information about a plan?
The plan administrator. Generally, the documentation given to plan members indicates the name and contact information of a contact person.
How can someone become a pension committee member?
Any person who wants to be a committee member, whether or not he or she is a plan member, can
express an interest in becoming a member to the persons who have the power to designate committee members (for example, the employer or the union). An interested person can also run as a candidate for election by the plan members and beneficiaries at the plan's annual meeting.
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