ESOP plan administration committees are set up by companies to oversee ESOP operations. Depending on the committee's charter, it can appoint and monitor the ESOP trustee; resolve questions concerning allocations, vesting, eligibility, distributions, and other plan operational issues; make sure appropriate records are kept and passed on to the third-party administrator (TPA); and interpret plan provisions, among other possibilities. Not all ESOPs have these committees. These functions may be performed by the board of directors.
This sample ESOP Plan Administration Committee Charter was provided to us by ESOP-owned Smith Seckman Reid, an engineering company.
This is one of many documents in our members-only Document Library. Items in the library cover a wide range of communication, legal, administrative, governance, and fiduciary issues. They are all free to members and are an essential resource for any ESOP company.