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.