Plan sponsor

Plan Sponsor

An employer or company that offers a pension plan to employees. Plan sponsors may directly manage the pensions, but most allow third-party money managers to handle them. However, plan sponsors must determine which employees are eligible for the plan, and most contribute matching funds to each employee's pension, up to a certain point. A wide variety of pension plan types exist, and plan sponsors determine and may change the terms of what they offer. See also: 401(k), IRA.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Plan sponsor.

The plan sponsor of a retirement savings plan is an employer who offers a retirement savings plan to employees.

The sponsor is responsible for choosing the plan, the plan provider, and the plan administrator, and for deciding which investments will be offered through the plan.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
When a plan sponsor goes out to bid to hire a recordkeeper, its selection process can mean the difference between the plan succeeding or it failing to generate adequate savings, or even it putting participants' personal identification information (PPI) at risk.
Notably, according to Cerulli's 401(k) plan sponsor survey, plan sponsors do not necessarily think only of annuities when contemplating the addition of an in-plan retirement income option.
DES MOINES: New findings from the latest Plan Sponsor Council of America (PSCA) survey report revealed plan sponsors are changing key governance practices to improve 403(b) plan performance and outcomes for employees.
PBGC rate premium increases continued to shape plan sponsor behavior when deciding how to de-risk portfolios, the survey results showed, with 80% of respondents saying they would alter their plan strategy in the next six months.
Nevertheless, these self-directed accounts customarily include higher share class expense funds available to retail investors than those that have been negotiated by the plan sponsor or advisor for the plan's investment fund menu.
However, there are interrelated decisions around taxes that can impact a participant's retirement and the economics of the plan sponsor.
Morgan survey reveals disconnects between plan sponsor intent and strategy with employee retirement
Plan sponsor experience continues to vary between 40 percent and 70 percent, with over 80 percent of plan sponsors falling in this range in 2014.
I get my annual informational booklet from my health insurance provider (which I note also offers interpreter services in Spanish, Chinese Mandarin, Chinese Cantonese, Tagalog, French, Vietnamese, German, Korean, Russian, Arabic, Italian, Portugues, French Creole, Polish, Hindi and Japanese), and am informed that "you may be able to leave a plan at certain times designated by your Plan Sponsor. If you choose to enroll in a Medicare health plan or Medicare Prescription Drug plan that is not offered by your Plan Sponsor, you may lose the option to enroll in a plan offered by your Plan Sponsor in the future.
A 403(b) plan sponsor may use the Voluntary Correction Program (VCP) under EPCRS to correct a failure to timely adopt a written 403(b) plan document.
#2) "408(b)(2) Compliance and the Service Provider List," (March 6, 2012)--By far the biggest story of the year was the DOL's new fee disclosure rule, which became official as of July, 2012 The rule had a major impact on 401(k) plan sponsor compliance, as the plan sponsor would now be held liable for any service provider who failed to comply with the rule.

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