Independent Pension Trustees in Australia
In Australia, pension plans are administered by independent trustees. The trustees are typically financial institutions, which are responsible for managing the plans, investing plan assets, and paying benefits. The trustees are licensed and regulated by government agencies. In the case of union-negotiated plans, the trustees may consist of an equal number of representatives of workers and employers. Regardless of whether the trustee is a financial institution or a board of workers and employers, the trustees are legally responsible for making decisions in the best interests of the workers and retirees.
Employers are responsible for selecting a financial institution or other independent trustee, and for transmitting contributions to the trustees. They have no responsibility for managing the plan.
Read more about trustees.
Tags: International Pensions
Spotlight
Wondering how much you can contribute to your retirement plan this year? Read our helpful fact sheet to find out. The fact sheet also includes contribution limits for previous years. Read the fact sheet.
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Did You Know?
A 401(k) plan is a retirement savings plan in which the benefit is based on contributions to an individual account and the investment return on those contributions. Typically, employees make contributions to the plan and, in many cases, employers match the employees' contributions. These plans are called defined contribution plans. In most 401(k) and other retirement savings plans, the employee is responsible for choosing among the investments offered by the plan. Other types of retirement savings plans are 403(b) and 457 plans.
