An increasing number of organizations, regardless of their size, are now using retirement plan committees to oversee their 401(k) and 403(b) plans. … It allows for documentation of all plan fiduciary decisions. It helps ensure there is a process in place for making decisions that are in the best interest of participants.
Besides, who should be on 401k committee?
Either your Chief Operating Officer or Chief Financial Officer should serve on the committee, as should your Human Resources Director and at least one member of senior management. In addition to these high-level leaders, your committee should include at least one plan participant, if not more.
In this way, what is a fiduciary committee?
The objective of a fiduciary committee is to make, or assist the plan sponsor in making, fiduciary decisions.
What is a retirement plan committee?
Retirement plan governance is the system through which key decisions are made about strategy and operations, including plan design, administration and investment choices. Typically, at the core of plan governance is an official plan governance committee.
What is an example of a fiduciary?
They include lawyers acting for clients, company executives acting for stockholders, guardians acting for their wards, financial advisors acting for investors, and trustees acting for estate beneficiaries, among others. An employee may have a fiduciary duty to an employer.
What is fiduciary duty of care?
The duty of care stands for the principle that directors and officers of a corporation in making all decisions in their capacities as corporate fiduciaries, must act in the same manner as a reasonably prudent person in their position would.
What are the three fiduciary duties?
There are three categories of fiduciary duties. They are the duty of care, the duty of loyalty, and in some states the duty to act in good faith and in others the duty of obedience.