29 U.S.C. § 1103 : US Code - Section 1103: Establishment of trust

Search 29 U.S.C. § 1103 : US Code - Section 1103: Establishment of trust

    (a) Benefit plan assets to be held in trust; authority of trustees
      Except as provided in subsection (b) of this section, all assets
    of an employee benefit plan shall be held in trust by one or more
    trustees. Such trustee or trustees shall be either named in the
    trust instrument or in the plan instrument described in section
    1102(a) of this title or appointed by a person who is a named
    fiduciary, and upon acceptance of being named or appointed, the
    trustee or trustees shall have exclusive authority and discretion
    to manage and control the assets of the plan, except to the extent
    that - 
        (1) the plan expressly provides that the trustee or trustees
      are subject to the direction of a named fiduciary who is not a
      trustee, in which case the trustees shall be subject to proper
      directions of such fiduciary which are made in accordance with
      the terms of the plan and which are not contrary to this chapter,
      or
        (2) authority to manage, acquire, or dispose of assets of the
      plan is delegated to one or more investment managers pursuant to
      section 1102(c)(3) of this title.
    (b) Exceptions
      The requirements of subsection (a) of this section shall not
    apply - 
        (1) to any assets of a plan which consist of insurance
      contracts or policies issued by an insurance company qualified to
      do business in a State;
        (2) to any assets of such an insurance company or any assets of
      a plan which are held by such an insurance company;
        (3) to a plan - 
          (A) some or all of the participants of which are employees
        described in section 401(c)(1) of title 26; or
          (B) which consists of one or more individual retirement
        accounts described in section 408 of title 26;

      to the extent that such plan's assets are held in one or more
      custodial accounts which qualify under section 401(f) or 408(h)
      of title 26, whichever is applicable.
        (4) to a plan which the Secretary exempts from the requirement
      of subsection (a) of this section and which is not subject to any
      of the following provisions of this chapter - 
          (A) part 2 of this subtitle,
          (B) part 3 of this subtitle, or
          (C) subchapter III of this chapter; or

        (5) to a contract established and maintained under section
      403(b) of title 26 to the extent that the assets of the contract
      are held in one or more custodial accounts pursuant to section
      403(b)(7) of title 26.
        (6) Any plan, fund or program under which an employer, all of
      whose stock is directly or indirectly owned by employees, former
      employees or their beneficiaries, proposes through an unfunded
      arrangement to compensate retired employees for benefits which
      were forfeited by such employees under a pension plan maintained
      by a former employer prior to the date such pension plan became
      subject to this chapter.
    (c) Assets of plan not to inure to benefit of employer; allowable
      purposes of holding plan assets
      (1) Except as provided in paragraph (2), (3), or (4) or
    subsection (d) of this section, or under sections 1342 and 1344 of
    this title (relating to termination of insured plans), or under
    section 420 of title 26 (as in effect on August 17, 2006), the
    assets of a plan shall never inure to the benefit of any employer
    and shall be held for the exclusive purposes of providing benefits
    to participants in the plan and their beneficiaries and defraying
    reasonable expenses of administering the plan.
      (2)(A) In the case of a contribution, or a payment of withdrawal
    liability under part 1 of subtitle E of subchapter III of this
    chapter - 
        (i) if such contribution or payment is made by an employer to a
      plan (other than a multiemployer plan) by a mistake of fact,
      paragraph (1) shall not prohibit the return of such contribution
      to the employer within one year after the payment of the
      contribution, and
        (ii) if such contribution or payment is made by an employer to
      a multiemployer plan by a mistake of fact or law (other than a
      mistake relating to whether the plan is described in section
      401(a) of title 26 or the trust which is part of such plan is
      exempt from taxation under section 501(a) of title 26), paragraph
      (1) shall not prohibit the return of such contribution or payment
      to the employer within 6 months after the plan administrator
      determines that the contribution was made by such a mistake.

      (B) If a contribution is conditioned on initial qualification of
    the plan under section 401 or 403(a) of title 26, and if the plan
    receives an adverse determination with respect to its initial
    qualification, then paragraph (1) shall not prohibit the return of
    such contribution to the employer within one year after such
    determination, but only if the application for the determination is
    made by the time prescribed by law for filing the employer's return
    for the taxable year in which such plan was adopted, or such later
    date as the Secretary of the Treasury may prescribe.
      (C) If a contribution is conditioned upon the deductibility of
    the contribution under section 404 of title 26, then, to the extent
    the deduction is disallowed, paragraph (1) shall not prohibit the
    return to the employer of such contribution (to the extent
    disallowed) within one year after the disallowance of the
    deduction.
      (3) In the case of a withdrawal liability payment which has been
    determined to be an overpayment, paragraph (1) shall not prohibit
    the return of such payment to the employer within 6 months after
    the date of such determination.
    (d) Termination of plan
      (1) Upon termination of a pension plan to which section 1321 of
    this title does not apply at the time of termination and to which
    this part applies (other than a plan to which no employer
    contributions have been made) the assets of the plan shall be
    allocated in accordance with the provisions of section 1344 of this
    title, except as otherwise provided in regulations of the
    Secretary.
      (2) The assets of a welfare plan which terminates shall be
    distributed in accordance with the terms of the plan, except as
    otherwise provided in regulations of the Secretary.