The Good Stuff from the Tibble Case
Too often we don't hear about the good things companies are doing with their retirement plan, even when they're in the news. Tibble v. Edison International is a recent court case regarding share classes of investments and whether the plan sponsor/committee has the duty to review prior investment decisions for fees, namely regarding institutional share classes.
Nevin Adams, JD wrote a short article for the National Association of Plan Advisors on the good investment committee lessons learned from this case:
- They had a plan investment committee: while not required, a good idea to make thoughtful decisions.
- They had regular committee meetings: if they're charged with overseeing the plan, it's a good idea to actually hold a meeting, or better yet, do so regularly!
- They kept minutes of committee meetings: great tools for recounting why decisions were made after everyone has forgotten.
- They had an investment policy statement: again, not required, but a good idea to keep cool heads during panicked times and establish prudent standards.
- They hired an investment professional to help: you can't fully abdicate fiduciary responsibilities, but it's totally ok to hire a prudent expert to help you.