Plan Sponsor

What is Plan Sponsor?

A plan sponsor is the entity, typically an employer or union, that establishes and maintains an employee benefit plan. As a plan sponsor, the employer is responsible for plan design, funding, compliance with regulatory requirements such as ERISA, and fiduciary oversight. Plan sponsors select insurance carriers or third-party administrators, determine contribution levels, and ensure that the plan operates in the best interest of participants. The plan sponsor’s responsibilities include filing required documents, providing plan information to employees, and maintaining records.