(a) Responsible for operations and assets. Members
of the board of trustees are responsible for all operations of the
trust and must take all necessary precautions to safeguard plan assets.
(b) Contract for plan administration. Within 12 months
of the establishment of the initial board of trustees, the board of
trustees must contract with a third party administrator to perform
the day-to-day operations of the plan.
(c) Insure payment of claims. Within 12 months of the
establishment of the initial board of trustees, the board of trustees,
or an approved PEO acting as their agent, will contract for, and pay
for with plan assets, a stop-loss insurance agreement in the name
of and for the benefit of the plan and trust that complies with the
requirements of §13.567 of this title (relating to Stop-Loss
Insurance) to insure payment of all claims arising under the terms
of the plan.
(d) Appointment of agents. The trustees may appoint
agents for the trust as necessary to meet the obligations of the plan
and trust. Each agent may only exercise the authority and perform
the duties required in the management of the trust and the affairs
of the plan that is delegated to them by the board of trustees.
(e) Service without compensation. A member of the board
of trustees serves without compensation except for actual and necessary
expenses.
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