Every qualified Plan must have an entity or person who “sponsors” the Plan and takes on the responsibility for the Plan’s operation. A Plan Sponsor is a designated party (usually a Company or Employer) that sets up a retirement program for the entity’s own employees.
The Plan Sponsor does not have to be a company, employer or a person, but could be an Independent Fiduciary, a Professional Employer Organization (PEO), a Chamber of Commerce, a Union Organization, to name a few.
The primary responsibility of the Plan Sponsor with regard to a retirement program is to implement or establish a qualified retirement plan.