Retirement Plans: Investment Committee Checklist

The fiduciary landscape is changing, and processes once seen as “good enough” no longer check all of the right boxes. Use this straightforward checklist to ensure the investment committee is covering its bases.

Plan Investments

  • Review funds to ensure the lowest cost share class is utilized
  • Review the size of the investment menu offered to participants to ensure reasonableness
  • Monitor the appropriateness of all investment options
  • Know what’s under the hood of the plan’s Qualified Default Investment Alternative (QDIA)
  • Discuss re-enrolling participants into the QDIA

Plan Fees

  • Calculate the true and total cost of the plan
  • Benchmark plan fees to ensure they are reasonable
  • Determine how fees are calculated and paid (per head or basis point) and document why that’s appropriate
  • Know if revenue sharing exists and if it’s leading to inequality

Participant Outcomes

  • Review plan statistics and compare those to industry averages
  • Review goals of plan design and participant education programs
  • Monitor the progress of goals and adjust education accordingly

Fiduciary Governance

  • Review legislation, litigation and industry trends and discuss how this may impact your plan
  • Document committee meeting minutes
  • Hold periodic fiduciary training sessions for all committee members
  • If necessary, review and update the Investment Policy Statement
  • Distribute committee agenda and handouts prior to meeting

Ready to take the next step?

Now that you know what boxes you should be checking, download our investment committee handbook to continue educating your committee on fiduciary responsibilities.