The Value of Having a Retirement Plan Committee Charter
While not required by ERISA, attorneys say a committee charter is a best practice that can help a plan run more smoothly and help fiduciaries avoid litigation and penalties.
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The Employee Retirement Income Security Act (ERISA) does not require retirement plan and investment committees to have a charter, but industry experts believe this is a best practice that all plan sponsors should seriously consider.
“When you learn that the charter is the road map to the fiduciary oversight of the plan, you realize how committee charters can be even more important than the investment policy statement [IPS],” says Mike Webb, vice president at Cammack Retirement Group.