Best Practices for Investment Committees

An indispensable guide to avoiding the legal and financial pitfalls and of retirement plan investment While it has always been true that a well-staffed and managed investment committee is key to the success of a corporate retirement plan, in today's increasingly complex and litigious world it is also a matter of survival. But what constitutes a prudent investment committee selection and operating process? How should a committee be selected and governed? How much reliance should a committee place on outside consultants? Written by an author with extensive, in-the-trenches experience, this book provides complete answers to these and all vital questions concerning the creation, staffing and management of a highly-adept investment committee, along with expert advice and guidance on serving on an investment committee and ensuring that your 401(K) investment program is sound, efficient and in complete compliance.  Offers expert advice and guidance on how to serve successfully on an investment committee, facilitate effective management, design and implement a robust investment policy and much more  Packed with sample documents, forms, templates, checklists, diagrams and other valuable, ready-to-use resources Features numerous real-world examples drawn from the author’s years of experience as an accredited investment

FOREWORD vii INTRODUCTION ix ABOUT THE AUTHOR xi CHAPTER 1: Why You Need a 401(k) Investment Committee 1 CHAPTER 2: Forming an Investment Committee 9 CHAPTER 3: Investment Committee Meetings 17 CHAPTER 4: Importance of Investment Policy 25 CHAPTER 5: Complying with Erisa Section 404(c) 31 CHAPTER 6: Selecting, Monitoring and Replacing Investment Managers 37 CHAPTER 7: Employer Stock in the 401(k) Plan 47 CHAPTER 8: Hiring a Pension Consultant 51 CHAPTER 9: Fiduciary Liability Insurance 61 CHAPTER 10: Understanding Investment Expenses & Fees 67 APPENDIX 1: Investment Option Evaluation Form 79 APPENDIX 2: Investment Committee Meeting Minutes 81 APPENDIX 3: Fiduciary Acknowledgment Letter 83 APPENDIX 4: By-laws and Operating Procedures for the Investment Committee 85 APPENDIX 5: Fiduciary Audit Checklist 91 APPENDIX 6: Glossary 95 APPENDIX 7: Resources 107