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Making Wise Use of an ERISA Plan Investment Committee

November 10, 2021 (2 min read)

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.


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. 
  • 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. 

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