Can anyone direct me to regulations, advisory opinions or specific information as to whether or not a non-fiduciary (directed recordkeeper/silent Trustee) can retain "float" interest on disbursement accounts (General Accounts) maintained for a qualified Plan? I have read through A.O. 93-24A (1994), but I cannot locate any other specific rulings or information. If allowed, would the non-fidiciary simply have to pass notice (disclosue) to the Plan Trustees (Fiduciaries)? Thank you in advance for any comments or suggestions.

I don't think you're going to find any more formal guidance. However, there is a very interesting discussion set forth in an informal DOL letter reported at 1994 ERISA LEXIS 56 (8/11/94).

I think you can find the letter PJK is talking about at: http://www.dol.gov/dol/pwba/public/program...94/mccormic.htm

I think the answer is no. That money should be in a trust checking account until, and if ever, the check is cashed. Of course if in the normal course of business banks use this float, that's something else.

There was a DOL ruling on this sometime back -- perhaps the DOL letter identified above. My recollection of the conclusion was that the float, technically, is a Plan asset. Arguably, if the bank is NOT a plan fiduciary, the "lost" float is a resonable expense of plan administratoion. If, however, the bank is a plan fiduciary, to avoid a prohibited transaction the bank should either (a) figure out how to credit the float credit to the plan or (B) disclose in its fee schedule that the float is a component of the fiduciary's fee.