An ESOP administrative committee focuses on the operation of the plan and on the management of the plan assets. Watch our video to learn about the fiduciary risks of serving on the administrative committee.
Administrative Committee Members
The fiduciary risks of administrative committee members are relatively low compared to the risks of serving as a trustee. The administrative committee primarily manages plan recordkeeping and reporting, handles benefit claims, and deals with participant rights.
It is possible for the administrative committee to be in conflict or even litigation involving benefit claims. However, typically the committee is not involved in larger issues such as prudent investment of assets and whether or not transactions were prudently structured.