Whether you’re tailgating at your favorite sporting event, hiking down your favorite trail, or skiing down your favor mountaintop, preventing sunburn is primarily about one thing; having awareness about the sun!
The more aware we are about our environmental surroundings, the better prepared we convey to deal with those surroundings. Today’s sunscreen moment is just one other piece of information to get fiduciaries better awareness about operating their plan.
Today’s Sunscreen moment is about understanding “settlor expenses”.
Generally speaking, a settlor expense is an expense incurred to organize the plan and are not permitted to be paid for by the plan. Examples of expenses for settlor activities include but are not limited to:
- Plan design activities such as pre-plan adoption or pre-plan amendment activities.
- Costs incurred for discretionary plan amendments,
- Actuarial forecasting activities and error correction activities
When operating the plan, fiduciaries are well served to make sure that these type of expenses are not paid for by the plan. They should instead be paid for by the plan sponsor.
It is my sincere hope that these sunscreen moments will help you better operate your plan for better fiduciary protection. By the way, while supplies last, if you would like a bottle of ERISA sunscreen, send us an email with your contact information and we will send you a bottle.