How safe are plan assets against claims of creditors?
The employer has no interest in the assets in the Plan trust. The employer has no ownership of the funds, and under the terms of the Plan the employer has no right to have any of the assets revert to the employer. Therefore, the assets of the Plan are not subject to the employer’s creditors. Similarly, the participants have no current interest in the funds in the hands of the Plan trustee, which is an independent trustee not under control of the participants. Therefore, the Plan assets will not be subject to claims of creditors of any of the parties to the Plan.
