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Does ERISA Require a 403(b) Plan to Have a Committee Charter?
Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.
Q: We are in the process of establishing a Retirement Plan Committee for our ERISA 403(b) plan. Does the Employee Retirement Income Security Act require us to have a formal committee charter?
Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:
A: ERISA does not require your committee to have a formal charter, and there is no single right answer on whether to adopt one–some plan sponsors do and some do not. For those that choose to adopt one, a charter need not be lengthy or cover every contingency; a simple document addressing core operational procedures can be sufficient.
NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.
Do YOU have a question for the Experts? If so, we would love to hear from you! Simply forward your question to Amy.Resnick@issmarketintelligence.com with Subject: Ask the Experts, and the Experts will do their best to answer your question in a future column.
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