Q: Do you have any tips for forming a retirement plan committee? We recently implemented a 401(k) plan and want to get the committee off on the right foot.
A: Congratulations on the plan, and on seeking an optimal structure for plan oversight. There is no need to reinvent the wheel; a lot of good information has been published on the topic of retirement plan committees. In fact, Nuveen, a TIAA Company, included some interesting thoughts in its publication, next. Along with ideas such as selecting the right number of members for the committee, utilizing a committee charter, and thoroughly documenting actions and processes of the committee, the article discusses the benefits of considering diversity. After all, they suggest, diversity among juries and employees, on corporate boards and in academia results in better decisions — and they cite a variety of studies to support the claims. It would follow that retirement plan committees could also benefit from a more diverse committee. Among the factors to consider, according to Nuveen, are gender, race, religion, age, culture, socioeconomic background, education and functional expertise.
Click here to read the article in next issue no. 3.