Investment Committee Charter For Defined Contribution Plan
About this template
The Investment Committee Charter for Defined Contribution Plan under USA law is a legal template document that outlines the responsibilities, structure, and operating principles of an investment committee for a defined contribution plan, following the laws and regulations of the United States.
This charter provides detailed guidelines and provisions that define the framework within which the investment committee operates to ensure compliance with legal requirements and fiduciary duties. It sets forth the committee's composition, roles, and responsibilities, including the selection, monitoring, and evaluation of investment options offered within the defined contribution plan.
The document outlines the committee's objectives, such as prudently managing and diversifying the investment funds, ensuring plan participants are provided with suitable investment options, managing risks, and adhering to the standards imposed by various regulatory bodies, such as the Employee Retirement Income Security Act (ERISA).
The charter also establishes the committee's decision-making processes, including meeting frequency, quorum requirements, voting procedures, and documentation protocols. It highlights the responsibility of committee members to act in the best interests of plan participants, maintaining confidentiality, and avoiding conflicts of interest.
Additionally, the charter may detail the committee's authority and limitations, including the power to hire and terminate investment managers or advisors, review investment strategies, and make recommendations to plan sponsors or trustees.
Overall, this legal template serves as a comprehensive guide for the formation and governance of an investment committee responsible for managing the investments and ensuring the financial security of participants within a defined contribution plan, in accordance with the specific requirements and regulations of the USA law.