Page 173 - NovDefComp

Understanding Fiduciary Responsibilities

Committee Best Practices

• Objectives and responsibilities of the Committee and other interested parties should be described in a Committee
Charter or By-laws.

• Appoint or hire capable plan fiduciaries.

• Conduct regular and consistent (at least annual) plan meetings to review the investment menu and expenses, plan
service providers, participant education, and operational administration of the plan (auditing & testing).

• Document key decisions made – keep records of topics and governance, including the reasoning (process is
important).

• Implement and maintain an Investment Policy Statement (IPS).

• Offer a well-diversified menu of prudently selected investment options, while avoiding redundnacy.

• Implement QDIA (Qualified Default Investment Alternative).

• Provide required disclosures and notices; timely file required annual reports.

• Maintain a fiduciary liability insurance policy.

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