What is a common feature of a Section 115 trust?

A Section 115 trust is established primarily for the purpose of funding public employee benefits, often including retirement benefits. A key characteristic of a Section 115 trust is that it typically operates with independent oversight. This oversight is essential because it ensures that the trust is managed in accordance with its specific purpose and applicable regulations, and it helps maintain transparency and accountability in how the trust's assets are used.

Independent oversight can come in various forms, such as a board of trustees or an advisory committee that is separate from the government entity that establishes the trust. This helps to ensure that the funds are managed prudently and in the best interest of the beneficiaries, reducing the risk of mismanagement and potential conflicts of interest.

While other options touch on features that could exist in certain contexts (like governance by a pension board or limitations on asset accumulation), they do not capture the defining aspect of a Section 115 trust's structure and operation as accurately as independent oversight. Such oversight is considered a best practice in trust management and contributes significantly to the trust's integrity and effectiveness in serving its intended purpose.