Retirement Plan Committee Tips for fiduciaries are always welcome. Many retirement plan fiduciaries and sponsors are confused about overseeing a plan and running a plan committee. There is no one size fits all formula for staffing and running a perfect committee. Appropriate Retirement Plan Committee tips can depend upon the size of the retirement plan. Plan demographics can also determine what tips should be appropriate for a retirement plan committee.
A retirement plan committee will provides employees with a broad array of suitable investment options, and hopefully minimize the personal liability associated with overseeing a plan. The committee serves as the core oversight tool for the plan’s governance structure.
When it comes to forming a solid retirement plan committee, it’s important to consider its size, who will serve and how the group will conduct business. Retirement Plan Committee Tips include how you set up and structure a committee and how a plan can function in your participants’ best interests.
- A committee should be right-sized for your plan. Smaller plans and organizations have smaller committees, whereas larger organizations may require a larger committee that can adeptly manage those complexities.
- Retirement Plan Committee members are not required to be ERISA or investment experts, however, they should have some familiarity with the plan and investing. Many times senior employees will be in place in the organization will contribute to high-functioning committees.
- Often a retirement plan committee will meet regularly as is a matter of preference, however, the frequency of meetings should be relative to the needs of the plan and participants. Retirement committees should consider meeting more often during times of transition or change. All committee members should be present at every meeting.
- Detailed, carefully crafted minutes should be taken at every meeting. Among the good Retirement Plan Committee Tips is designating a committee secretary to help oversee the minute-taking function and task.
The best Retirement Plan Committee Tips will include the fact that solid governance is key to a successful retirement plan! It is important to carefully consider exactly how your committee is constructed. Retirement Plan Committee Tips are designed to help you better understand how to build and maintain your company retirement plan. We hope that these tips are beneficial to your efforts!
Please click on the video above to learn more about improving the performance of your retirement committee.