Page 141 - AugDefComp

PART 1: EDUCATION POLICY – DECISION-MAKERS

1.1 Intent

For plan fiduciaries and staff, it is the assertion of this Policy that the Plan Sponsor and
Provider must:

• Acknowledge that it is critically important that fiduciaries make informed judgments
on all matters which come before them.
• Understand the primacy of all actions for the benefit of plan participants and their
beneficiaries.
• Adopt the types of objectives and procedures for plan participants as stated in Part
2 of this Policy.
• Offer regular, recurring educational programs to fiduciaries and staff that cover
plan compliance, legislative and regulatory activities, fund selection and
monitoring, and “best practices” in operational standards.
• Encourage fiduciaries to participate to the fullest extent possible in educational
activities provided by recognized associations and institutes for defined
contribution plans.
• Establish and make a commitment to ongoing funding for internal and external
educational programs as appropriate for the Plan.
• Develop an annual plan of scheduled educational programs for fiduciaries and
staff.
• Expressly focus attention on new fiduciaries and staff to assure they know and
understand their fiduciary roles.

• Establish mutually agreeable performance standards for the delivery of education

to fiduciaries and staff.

1.2 Objectives of Fiduciary Education
The goal of fiduciary education is to assure that all trustees and support staff understand
their fiduciary and due diligence responsibilities in the actions they take on behalf of plan
participants and their beneficiaries. The objectives of fiduciary education are to:

• Assure that new fiduciaries and staff receive comprehensive education covering
all their responsibilities.
• Especially for Investment Performance review, assure that fiduciaries and staff
understand basic fund evaluation methodology, fund objectives and characteristics
and appropriate benchmarks.
• Increase fiduciary awareness of national best practices in plan monitoring,
especially in educational programs available to plan participants.

2