What is the role of a plan administrator in benefit program governance?

• A. To fund the plan exclusively through employer contributions.
• B. To administer plan operations, ensure compliance, manage claims, and coordinate disclosures and enrollment.
• C. To set participant retirement ages for every participant.
• D. To approve all changes without any stakeholder input.

Answer: (B)

In benefit program governance, the plan administrator is responsible for the day-to-day operation and regulatory upkeep of the plan. This includes administering plan operations, ensuring compliance with plan documents and applicable laws, managing claims and distributions, and coordinating participant disclosures and enrollment. This role keeps the plan running smoothly by handling eligibility, processing claims, maintaining records, and communicating required notices to participants, while staying aligned with ERISA, IRS rules, and other governing requirements.

Funding the plan, setting participant retirement ages, or unilaterally approving all changes without input aren’t the administrator’s responsibilities. Funding is typically a sponsor or employer obligation tied to the plan’s funding arrangements. Retirement ages are determined by the plan terms or company policies, not the administrator. Major changes usually involve the sponsor and fiduciaries and require proper governance processes and stakeholder input.