The federal Pension Benefits Standards Act requires that:

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The federal Pension Benefits Standards Act requires that the funds not be under the complete custody and control of either the employer or the employees. Instead, pension funds are typically held in trust by a third-party administrator, such as a bank or investment company, to ensure that they are managed properly and not subject to misuse. This helps to protect the pension plan participants from the risk of financial loss due to mismanagement or fraud. The Act also sets minimum standards for contributions, vesting, and benefit payments, among other things, to ensure that pension plans are fair and sustainable over the long term.

The Federal Pension Benefits Standards Act Requires That