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Best Practices for Investment Committees

Best Practices for Investment Committees

Rocco DiBruno, Donald B. Trone (Foreword by)

ISBN: 978-1-118-53870-8

Dec 2015

128 pages

$12.99

Description

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