Rabbi Trusts

Wells Fargo & Company closed on the sale of our Institutional Retirement & Trust business to Principal Financial Group effective July 1, 2019.  There will be no immediate impacts to clients or plan participants and all plans and accounts will remain with Wells Fargo Institutional Retirement & Trust at this time. Customers will continue to access account information through this site and Wells Fargo Institutional Retirement & Trust relationship managers will continue to service all relationships. Clients will be contacted directly with additional details of the integration period.

A Rabbi trust is a legal arrangement that helps protect nonqualified plan benefits if a change in control event, such as a merger or acquisition, occurs. The trustee enforces the Rabbi trust document to ensure that assets are managed in the best interests of plan participants following the change in control event.

Wells Fargo Executive Benefits is an experienced Rabbi trust administrator and has facilitated nearly 250 change in control events.1 We offer a comprehensive range of Rabbi trust services.

Protection of the trust

If a change in control event occurs, Wells Fargo Institutional Retirement & Trust may be designated by the trust document as the sole authority to manage the trust's assets. Depending on the trust design, the new acquiring company can be prohibited from:

  • Making any trust amendments without participant approval
  • Managing the trust's investments

Duties of the trustee

Wells Fargo Institutional Retirement & Trust, as the appointed trustee, may perform enhanced duties after a change in control event occurs, including, but not limited to:

  • Working with the new company on funding requirements
  • Implementing an investment strategy for the trust portfolio
  • Monitoring the trust's investment performance to predict whether sufficient assets will be available to meet benefit payments
  • Determining participant benefit payments in the event of a dispute between an employee and the new company

Taxes on the investment income of the Rabbi trust are the obligation of the employer. Rabbi trust assets are not protected in bankruptcy and are subject to the claims of the company's creditors.