Selecting & Monitoring
The process of conducting periodic due diligence on the performance and fees of an investment. 401k and 403b plans are required to insure that fees are reasonable under section 408b2 and are required to disclose fees to plan participants under 404a5. Defined contribution plans like 401k and 403b are usually advised to create and investment policy statement or IPS which describes the characteristics of the investments that the DC plan should have in their plan against which they can make thoughtful selections and can properly monitor and replace when necessary.