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.

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.

References in periodicals archive ?
Summary paragraph: The PLANASPONSOR Plan Sponsor of the Year awards program proves what an integral role advisers play in guiding the nation's most successful plans.
Increasing percentages of employers offering matching contributions illustrate plan sponsor support in providing retirement security," says Bridget Bearden, Strategic Insight's head of defined contribution retirement research.
Summary paragraph: Plan sponsor activity changes direction
Moreover, service providers are not required to disclose their financial interest in the funds to the plan sponsor.
These cost savings can then be passed on to the plan sponsor and plan members.
The plan sponsor can correct the failure, pay a sanction, satisfy any additional requirements and enter into a closing agreement with the IRS.
This is an area for pension plan advisers to exert influence on the plan sponsor and suggest periodic reviews of the plan document--especially as the company gets bigger and starts having more people and dollars in the plan--to ensure full understanding of the sponsor's fiduciary obligations.
401(k) plan sponsor generally make one of two types of contributions, at least for NHCEs:
Allowing plan sponsors to restrict payment options solely to a lump sum would be particularly helpful where the plan sponsor has historically not allowed extended payment options, yet a few participants enjoy an extended payment option as a protected benefit from a former plan that was merged into an existing plan.
An ERISA section 408(b)(2) audit by an independent fiduciary provides a plan sponsor with an objective examination of vendor processes, performance, services, compensation, and conflicts.
Another matter that may trip up the plan sponsor is the census that must be prepared at the end of each plan year.