1
Charter.
5
Fiduciaries of qualified plans need to understand
what the committee charter provides. Are the
responsibilities articulated in the charter limited
to qualified plans only? If so, is it better for the
organization to expand the committee’s scope of
oversight to other benefits?
2
3
6
Administrative
Review.
Committees may want to schedule a portion of each
meeting to address how the administration of the plan
works, focusing on potential problem areas, such as
timing of contributions, definition of compensation,
and vesting and matching contribution calculations.
T
International
Plans.
The plan sponsor may maintain retirement
plans in other countries that require a level of
oversight. Also, fiduciaries should be aware of
special circumstances, such as Puerto Rico plans.
A committee member may want to start asking
whether the organization maintains a centralized
list of plans that may require oversight.
Participant
Claims.
ERISA fiduciaries are responsible for establishing
and maintaining reasonable claims procedures. A
portion of each committee meeting may need to
be reserved for reviewing any and all inquiries and
claims raised by participants. Legal counsel should
address how those claims should be responded to
under Department of Labor regulations.
4
Although
most
nonqualified
deferred
compensation plans are exempt from ERISA, to
the extent the plan is not, plan fiduciaries would
have similar duties as they have with respect to
qualified plans. Moreover, even if the plan is not
subject to ERISA fiduciary duties, many of the
administrative issues that affect qualified plans
will affect non-qualified plans too. And, ensuring
that plans comply with the strict requirements
of Code Section 409A may be appropriate for a
committee as well.
Check the Plan
Document.
Many investment committees are also