Pension and Trust Related Jobs
A trust is established by individuals and some corporations in order to provide for loved ones or employees. For example, parents may set up trust funds for their children in the event of their death.
The bank’s trust administrator will oversee the trust fund, obeying the parameters and guidelines the parents created in their will, until the children are of a specified age to receive the remaining balance of the fund. When children stand to receive very large sums of money in the event of their parents’ death, a trust is established so that the administrator ensures that the children’s financial needs are taken care of. The administrator may also invest some or all of the trust fund. The primary goal of the trust administrator is to protect the assets in the fund. Trusts can be established for many reasons, and the bank oversees the assets so that the owner of the trust can have peace of mind that his or her wishes are being respected.
When it comes to corporations, the trust department may be administering a pension or profit-sharing fund. While these types of retirement funds are not as common as in days past, many companies still offer them. Pension funds are established for employees by the employer, who starts the pension fund with a large lump sum of money. With most pension funds, both the employer and employee contribute a certain amount to the fund. When the employee retires, the pension is paid in monthly payments to the employee so he or she will have income.
Trust department employees help companies establish their pension funds. They will ensure that they are set up properly and in agreement with all federal regulations. They may also be directed to invest portions of the pension fund so that it earns additional funds each year. The pension administrator will also calculate yearly contributions, disbursements, and report all pension activity to the Internal Revenue Service. Trust departments perform similar duties when it comes to profit sharing plans. In these plans, a company sets aside a certain percentage of its profits each year, and employees receive a share of them, typically based on their number of years of service to the company. Most profit sharing plans either award the profit share funds as a cash bonus at the end of the year, or place the funds in individual accounts for each employee. The amount is saved and may be invested until the employee retires. Some plans allow other reasons for deducting some of the funds prior to retirement.
An individual or corporate trust account may hold more kinds of assets than cash. Jewels, gold, and real estate can also be held in trust, and bank trust account personnel must manage these assets.
The trust department is appropriately named. Individuals and corporations establishing trust accounts are placing their assets in the hands of trust managers and administrators, and trusting them to manage them so that they meet all legal and tax regulations and serve the purpose for which they were established. Trust department employees must be knowledgeable and experienced in asset management.
Trust department employees work regular business hours in good working environments. There is usually no travel required in the position, except for seminars or continuing education.
There is a position at every level, from entry-level to executives. If working in a bank’s trust department sounds interesting to you, you are organized, have an eye for details, and enjoy managing assets, this may be an option for you to look into.
Here is some basic information about the most common jobs in a bank’s trust department.