What is a Plan Sponsor?

Plan Sponsor definition

Organisations, entities and individuals that have adopted and run or maintain a benefits plan for employees. Employers are typically plan sponsors but unions, professional bodies, or third-party service providers can also be sponsors. Plan sponsors must determine and enforce eligibility criteria for the plan, administer the process of joining and assisting new members and making decisions on what benefits are supplied and when. Plan sponsors may outsource their responsibilities or keep them in-house.