Texas Bank To Take on Plan Sponsors' Fiduciary, Trustee Responsibilities

October 2, 2007 (PLANSPONSOR.com) - The American National Bank of Texas (ANB) has come out with a program to help pension plan trustees reduce their fiduciary risk and liability by transferring some of those responsibilities.

According to a press release, the ANBTrust oversight program is for those managing a defined contribution plan, an employee stock ownership plan (ESOP), or a defined benefit plan.

With the program the Trust Division at ANB acts as a trustee, fiduciary, and named plan administrator, and the Trust Retirement Committee takes on most of the plan sponsor’s oversight duties. As part of the program, ANB selects and monitors the investments and service providers for the plan, the announcement said.

“Many fiduciaries are exposed to risks, liabilities, and responsibilities for which they are untrained and unprepared. In many cases plan sponsors are simply unaware of, or greatly underestimate, their potential risks and liabilities,” said Kathy Howe, executive vice president of American National Bank of Texas, in the press release. “Our turnkey service helps to insulate the company executives and human resources employees from those risks to a greater degree than ever before.”

As named trustee, named plan administrator, and named fiduciary, ANBTrust provides:

  • a retirement oversight committee that shoulders responsibilities such as plan operation, investment selection, and enrollment;
  • discretionary control over the plan s management and disposition of the plan s assets;
  • selection and monitoring of third party providers such as the third party administrator (TPA) or recordkeeping firm, investment provider/platform, and registered investment adviser firm; and
  • recordkeeping oversight, offers advice on rights and options, rules on claims, directs benefit distribution, and executes reports for the relevant regulatory bodies.

More information is at  www.anbtrust.com.