Get a free consultation

What are Plan Administrators and What Do They Do?

What are Plan Administrators and What Do They Do?

Under 29 CFR § 2510.3-16, a plan administrator is a person designated by the terms of the instrument under which a benefits plan is operated. If the instrument does not designate an administrator, the administrator is the plan sponsor. A plan administrator for the purposes of the Employee Retirement Income Security Act of 1974 (ERISA) is a fiduciary of the benefits plan who is responsible for managing the plan and ensuring that it operates in accordance with ERISA.

The plan administrator does have the ability to outsource administration of the plan to a third-party services provider. However, the plan administrator remains as a fiduciary of the plan, even if a third party is performing the administrative functions. The plan administrator is responsible for prudently choosing a third party administrative services provider and monitoring that provider’s compliance with ERISA.

Plan administrators have many responsibilities in terms of ensuring compliance with ERISA. Failing to comply with this federal law can result in costly fines. In general, plan administrators must perform certain tasks with respect to plan participants, such as:

·         Provide summary plan descriptions to participants

·         Ensure that participants receive quarterly benefit statements

·         Provide copies of the plan document to participants upon request

·         Furnish participant fee disclosures according to federal law

Another requirement of a plan administrator is to file an annual report on Form 5500, unless the plan is fully or partially exempt under federal law. One common exemption from the annual reporting requirement is for small welfare plans that cover less than 100 participants and are unfunded and/or insured. If the plan is required to file Form 5500, then the plan administrator must use an accountant to audit certain information for the purposes of the form, as well as provide certain information from the annual report in a Summary Annual Report and send it to all participants in the plan.

Bonnici Law Group has handled the claims of countless individuals who have encountered difficulties in procuring long-term disability benefits under their employers’ ERISA-governed insurance policies. We will protect your rights and advocate on your behalf throughout every stage of the claims process. Call our office at 858-261-5454 to set up an appointment to speak with us today.

Go to Top