Harness the power of the 401(k) investment committee to guard against financial liability and streamline your investment program
In today's complex, increasingly-litigious world, you must ensure that your investment decision process is sound and efficient. A well-managed investment committee is the key to survival and success.
Packed with numerous resources and examples, this clear guide will help you avoid legal and financial pitfalls and find answers to critical questions:
You will learn to:
An adept investment committee helps you identify crucial issues and get the job done right.
Rocco DiBruno, AIFA®, CIMA®, is a managing director and director of the Thornburg Retirement Group at Thornburg Investment Management. He has over thirty years' experience working with financial advisors and plan sponsors in the retirement plan sales, consulting, marketing, and product development. Rocco received his Certified Investment Management Analyst® (CIMA) designation from the Investment Management Consultants Association and his Accredited Investment Fiduciary Analyst® (AIFA) designation from the Center for Fiduciary Studies. He is also a frequent industry speaker on retirement industry trends and fiduciary governance.
FOREWORD vii
INTRODUCTION ix
ABOUT THE AUTHOR xi
CHAPTER 1: Why You Need a 401(k) Investment Committee 1
CHAPTER 2: Forming an Investment Committee 9
CHAPTER 3: Investment Committee Meetings 17
CHAPTER 4: Importance of Investment Policy 25
CHAPTER 5: Complying with Erisa Section 404(c) 31
CHAPTER 6: Selecting, Monitoring and Replacing Investment Managers 37
CHAPTER 7: Employer Stock in the 401(k) Plan 47
CHAPTER 8: Hiring a Pension Consultant 51
CHAPTER 9: Fiduciary Liability Insurance 61
CHAPTER 10: Understanding Investment Expenses & Fees 67
APPENDIX 1: Investment Option Evaluation Form 79
APPENDIX 2: Investment Committee Meeting Minutes 81
APPENDIX 3: Fiduciary Acknowledgment Letter 83
APPENDIX 4: By-laws and Operating Procedures for the Investment Committee 85
APPENDIX 5: Fiduciary Audit Checklist 91
APPENDIX 6: Glossary 95
APPENDIX 7: Resources 107
