Who controls a single-employer trust?

In a single-employer trust, the employer has the primary control over the trust. This structure is designed to manage assets set aside for employee benefits, such as pensions or healthcare. The employer establishes the trust to fund benefit plans, making decisions about the investment strategy, plan design, and distribution of benefits according to the terms of the trust and regulatory requirements.

The trust serves the purpose of safeguarding employee benefits, but it remains under the employer's oversight and management. Therefore, the employer is responsible for adhering to fiduciary duties, ensuring that the trust is managed in the best interests of the beneficiaries, which are typically the employees or retirees of the organization. This control includes the authority to appoint trustees, manage contributions, and ensure compliance with applicable laws governing employee benefit plans.

Other potential controllers, like employees, independent federal agencies, or state governments, do not have the same level of direct operational control over the trust as the employer does, although they may have oversight roles, regulatory responsibilities, or vested interests in the management of these benefit plans.