settlor functions

The Department of Labor has recently focused on the payment of settlor expenses from plan assets.  The DOL has, for a long time, taken the position that there is a class of discretionary activities which relate to the formation, rather than the management, of plans.  These activities are referred to as “settlor functions” and they generally include decisions relating to the establishment, design and termination of the plan.  Settlor expenses differ from administrative expenses, and it’s important to understand each.