§ 125.152. Board of trustees.
(a) The board of trustees of a fund shall establish the fund’s policies, ensure its fiscal stability and engage and delegate functions to its administrator, fiscal agent and service companies on behalf of the plan committee.
(b) Trustees shall be appointed by a fund’s plan committee in accordance with the trust agreement and the bylaws.
(c) At least 2/3 of a fund’s trustees shall be members of its plan committee. A member may not be represented by more than one trustee on the board of trustees. A fund’s administrator, service companies or an officer, owner, employe of or another person or corporation affiliated with the administrator or service companies may not serve as a voting trustee, unless the administrator or service company is an organization consisting of political subdivisions, the income of which is not subject to Federal income taxation. An administrator or service company may serve as a nonvoting trustee.
(d) Each trustee shall act as a fiduciary for the benefit of employees of members and shall carry out his powers and responsibilities under the trust agreement independent of any powers and responsibilities he may possess or exercise as an employee, officer or director of a member.
(e) If an association of employers assist in the establishment of more than one fund, the plan committees of the several funds may decide to participate in a single board of trustees to oversee the operations of the several funds. The following restrictions and requirements apply to that single board of trustees:
(1) Each of the several funds shall be equally represented on the board of trustees.
(2) The pledge of joint and several liability of a member of a fund applies only to the liabilities and obligations of that member’s fund; it does not apply to the other funds participating in the single board of trustees.
(3) Only the trustee-representatives of a specific fund shall vote on matters relating to the amendment of that fund’s trust agreement or bylaws.
(4) Only the trustee-representatives of a specific fund shall set policies and make determinations governing the admission of members and the requirements for membership in that fund.
(5) At least 2/3 of the single board of trustees shall be members of the plan committees of the several funds. Other restrictions on the makeup of the board outlined under subsection (c) also apply to the single board of trustees.
Source The provisions of this § 125.152 amended October 23, 1998, effective October 24, 1998, apply to applicants, self-insurers, runoff self-insurers, group self-insurance funds and runoff funds, 28 Pa.B. 5459. Immediately preceding text appears at serial page (201170).
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