Making Wise Use of an ERISA Plan Investment Committee

Plan sponsors have a fiduciary obligation to prudently select and manage the investment options they offer participants in a retirement plan, and the obligation is under special scrutiny by participants in a plan with participant-directed investments. Plan sponsors often establish an investment committee that is responsible not only for selecting, but also monitoring, plan investment options, on a periodic basis, to be sure they continue to be prudent. Review the best practices you, as counsel, can take in establishing or reviewing the activities of an ERISA plan investment committee. As you’ll be reminded—documentation is key.

READ NOW »

Related Content

• Fiduciary Committee Best Practices—Part 2: Preparing Meeting Minutes
  Reference this second part of the lead article about investment committee best practices, which focuses on how to prepare the minutes of an investment committee meeting. The minutes are the record that courts will reference if there is a participant challenge to the investment committee’s prudence in selecting or monitoring plan investments. 

• Investment Committee Issues for Defined Contribution Plans
  Learn more about the process an investment committee can take in the selection and monitoring of investments. Are your benchmarks current? Are you handling blackout periods with sufficient notice, where required?

• ERISA Retirement Plan Investment Resource Kit
  Discover a trove of content that will help you in providing counsel to an investment committee in this resource kit which includes sample minutes for reference, investment policy statements for a defined contribution plan, charters, and helpful board resolutions. 

Practical Guidance Updates

Featuring the latest updates from your Practical Guidance account.  

• Employee Benefits & Executive Compensation Key Legal Developments Tracker
  Stay informed on new developments.
  • ERISA
    DOL provides further transition relief relating to prohibited transaction exemption 2020-02 (see 85 Fed. Reg. 82,798 (Dec. 18, 2020)), which permits certain arrangements involving investment advice fiduciaries that adhere to impartial conduct standards when providing advice to ERISA retirement plans and participants, including advice on IRA rollovers. DOL Field Assistance Bulletin 2021-02. 
  • Health and Welfare Plans
    IRS issues guidance regarding COBRA election and premium payment extended deadline rules under coronavirus relief (see 85 Fed. Reg. 26,351 (May 4, 2020) and EBSA Disaster Relief Notices 2020-01 and 2021-01) and providing special transition relief rule that establishes November 1, 2021, as the earliest date an applicable premium payment may become due. I.R.S. Notice 2021-58.
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
• The Practical Guidance Journal Fall 2021 Edition features Environmental, Social, and Governance guidance.
• Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 20 practice areas, and find out how you can Become a Practical Guidance Author.
• New Practical Guidance Content
  • Investment Committee Meeting Minutes: Defined Contribution Plan
  • 401(k) Plan Top-10 Year End Laundry List
  • Massive Walgreen’s Worker Class Inks $13.75M 401(k) Deal
  • Mental Health Parity Act: A Compliance Wake-Up Call
  • Special Alert on the No Surprises Act and Transparency Requirements
  • Form 5500 Proposal Reflects SECURE Act Changes and More
  • Premium Incentives for Vaccination Status

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+