The Board of Trustees is the legal administrator of the plan and has overall responsibility with respect to the administration of the plan and management of the fund. They have a fiduciary responsibility towards the plan members, beneficiaries and other stakeholders. Despite being appointed by the Union or CLRA, they recognize the differences between their duties as plan administrators and their respective roles with the Union or affiliated employer with the CLRA.
The identified roles and responsibilities for the Board of Trustees are identified in the Governance Policy and reviewed annually to ensure compliance.
The Board of Trustees has retained the services of an in-house Administrator and a Third Party Administrator. Together they provide all necessary, customary and required services for the proper and complete administration of the plan. In other words, they are responsible for the day to day operation and administration of the plan. As Administrators, they also have a fiduciary responsibility to act in the best interests of the plan’s members and beneficiaries.
The identified roles and responsibilities for the Administrator are identified in the Governance Policy and reviewed annually to ensure compliance.
Given the complexity of modern day trust funds and the legal framework under which the trustees and trust funds must operate, professional advice is increasingly critical to trustees. While the Trust Agreement allows the Board of Trustees to retain the services of professional advisors to assist them in the administration and management of the plan, they are still responsible for the actions of the Trust. As such, they must ensure that the appropriate care and attention is given to the selection of suitable professional advisors. Furthermore, they have an obligation to supervise the professional advisors to the extent that it is reasonable to do so. Each year the professional advisors undergo a performance evaluation to ensure they are compliant with the roles and responsibilities set out in their written contracts with the Board of Trustees.