Confero Summer 2015: Issue 11 | Page 22

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