Improving the Plan Sponsor-Trustee Relationship

February 6, 2013 ( – Many qualities to look for when hiring a trustee are similar to those for hiring any other service provider.

By Rebecca Moore | February 05, 2013
Page 1 of 3 View Full Article

These include a workable relationship, cost related to value and the ability of the provider to cooperate with other providers, Margaret Raymond, vice president and managing counsel at T. Rowe Price, told PLANSPONSOR. However, there are specific questions plan sponsors should ask when evaluating a trustee.  

According to Raymond, first they should ask whether they want to self-trustee or outsource that duty. Either individuals or a committee at the plan sponsor can serve as trustee. They should consult their own attorneys about whether it makes sense for the sponsor to try to fulfill those duties.  

If the decision is to outsource, do they want a discretionary or non-discretionary trustee?