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Code of Federal Regulations Pertaining to U.S. Department of Labor |
| Labor |
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| Pension and Welfare Benefits Administration, Department of Labor |
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| Temporary Bonding Rules |
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| Criteria for Determining Who Must Be Bonded |
29 CFR 2580.412-3 - Plan administrators, officers and employees for purposes of section 13.
- Section Number: 2580.412-3
- Section Name: Plan administrators, officers and employees for purposes of section 13.
(a) Administrator. (1) For purposes of the bonding provisions, the
term ``administrator'' is defined in the same manner as under section 5
of the Act and refers to:
(i) The person or persons designated by the terms of the plan or the
collective bargaining agreement with responsibility for the ultimate
control, disposition, or management of the money received or
contributed; or
(ii) In the absence of such designation, the person or persons
actually responsible for the control, disposition, or management of the
money received or contributed, irrespective of whether
such control, disposition, or management is exercised directly or
through an agent or trustee designated by such person or persons.
(2) Where by virtue of this definition, or regulations,
interpretations or opinions issued with respect thereto, the term
embodies natural persons such as members of the board of trustees of a
trust, the bonding requirements shall apply to such persons.
(3) However, when by virtue of this definition or regulations,
interpretations, or opinions issued with respect thereto, the
administrator in a given case in an entity such as a partnership,
corporation, mutual company, joint stock company, trust, unincorporated
organization, union or employees' beneficiary association, the term
shall be deemed to apply, in meeting the bonding requirements, only to
those natural persons who:
(i) Are vested under the authority of the entity-administrator with
the responsibility for carrying out functions constituting control,
disposition or management of the money received or contributed within
the definition of administrator, or who, acting on behalf of or under
the actual or apparent authority of the entity-administrator, actually
perform such functions, and who
(ii) ``Handle'' funds or other property of the plan within the
meaning of these regulations.
(b) Officers. For purposes of the bonding provisions, the term
``officer'' shall include any person designated by the terms of a plan
or collective bargaining agreement as an officer, any person performing
or authorized to perform executive functions of the plan or any member
of a board of trustees or similar governing body of a plan. The term
shall include such persons regardless of whether they are
representatives of or selected by an employer, employees or an employee
organization. In its most frequent application the term will emcompass
those natural persons appointed or elected as officers of the plan or as
members of boards or committees performing executive or supervisory
functions for the plan, but who do not fall within the definition of
administrator.
(c) Employees. For purposes of the bonding provisions the term
``employee'' shall, to the extent a person performs functions not
falling within the definition of officer or administrator, include any
employee who performs work for or directly related to a covered plan,
regardless of whether technically he is employed, directly or
indirectly, by or for a plan, a plan administrator, a trust, or by an
employee organization or employer within the meaning of section 3(3) or
3(4) of the Act.
(d) Other persons covered. For purposes of the bonding provisions,
the terms ``administrator, officer, or employee'' shall include any
persons performing functions for the plan normally performed by
administrators, officers, or employees of a plan. As such, the terms
shall include persons indirectly employed, or otherwise delegated, to
perform such work for the plan, such as pension consultants and
planners, and attorneys who perform ``handling'' functions within the
meaning of Sec. 2580.412-6. On the other hand, the terms would not
include those brokers or independent contractors who have contracted for
the performance of functions which are not ordinarily carried out by the
administrators, officers, or employees of a plan, such as securities,
brokers who purchase and sell securities or armored motor vehicle
companies.
[28 FR 14403, Dec. 27, 1963, as amended at 34 FR 5158, Mar. 13, 1969.
Redesignated at 50 FR 26706, June 28, 1985]
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