In a Plan Governance white paper published by Arnerich Massena investment firm, we see the importance of building best practices within the area of Retirement Plan Governance. In nationwide programs offered by the Plan Sponsor University, we see plan governance as one of the biggest challenges faced by plan sponsors. While regulations pose a high hurdle for sponsors, they don’t provide a lot of guidance.
[button color=”green” size=”medium” link=”http://arnerichmassena.com/pdf/white-papers/Plan%20Governance_final.pdf” target=”blank” ]READ FULL WHITE PAPER[/button]
This white paper is an advertisement for the Arnerich Massena firm, yet it contains some very strong best practices advice. We do not do business with the firm and therefore wish to share this practical wisdom with our readers.
Organization, execution of a plan and maintaining required processes are highly complex and require a high level of organization and discipline. Many sponsors still have lots of questions and the white paper addresses many of the issues faced by plan sponsors.
As a fiduciary, you bear a significant responsibility to your participants, and a substantial liability for carrying out your responsibilities. ERISA holds plan sponsors to high standards, but does not provide specific guidance as far as processes and procedures. It is largely left up to plan sponsors to navigate the management of their plan. With careful plan governance, though, managing a retirement plan doesn’t have to be burdensome or even difficult. Best practice guidelines can help you set up documents and processes that will help your plan run smoothly and assist the committee in successfully carrying out their responsibilities.
One of the more salient features of this white paper is the focus on plan documents, the cornerstone of a solid plan. Keeping in mind that setting forth a plan carries with it a corresponding fiduciary and regulatory obligation to follow-it, sponsors may come to fear actually writing an Investment Policy Statement (IPS) or documenting other aspects of the plan. The truth is, documenting your plan should be a benefit to plan sponsors, and while not always specifically mandated, it is a requirement.
But beyond the plan outline represented by an IPS or other descriptive documentation, fiduciaries have a significant amount of compulsory requirements covered succinctly in the Arnerich Massena white paper. This includes a fiduciary checklist for plan sponsors on investment committee organization and meetings and IPS’s.
