PC
LEGAL / TAX
3(16) or 402 – Who’s the King?
ERISA says that when a qualified plan is established, at least one individual or entity must be the “named fiduciary” – for ERISA purposes, the “king.”
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vassals when outside forces threatened their livelihood or way of life. When an employer sets up an ERISA-covered retirement plan for their employees, who is the “king” of the plan? ERISA says that when a qualified plan is established, at least one individual or entity must be the “named fiduciary” – for ERISA
purposes, the “king.” ERISA grants the “king” a great many privileges, such as the privilege to name the plan’s terms, change plan provisions and terminate the plan whenever desired. In return for all those privileges, ERISA imposes great responsibilities, primarily because that named fiduciary is handling other peoples’ money. If you have ever served as a legal guardian
THINGS
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ld English law says that “A man’s home is his castle.” In most castles we find a king. The king enjoys many privileges… but he also has a great many responsibilities. History books tell us that the king had complete control of the vassals who populated his kingdom. However, the king also had the responsibility to protect those
/ SHUTTERSTOCK.COM
BY R.L. “DICK” BILLINGS
PLAN CONSULTANT | SPRING 2019
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3/18/19 9:13 AM