A 401(k) plan committee is a group of company staff, often senior leaders, tasked with the plan’s oversight. Usually comprised of the chief financial, human resources manager, and others, routinely reviewing the plan’s cost, and investment menu are primary committee tasks. A plan participant is also often recommended to include.
401(k) committees help in providing various perspectives and ensure the plan is acting in the best interest of plan participants to avoid regulatory sanctions and legal action. Documenting committee meetings is essential, as is creating a charter and investment policy statement (IPS) to ensure a consistent process in how the plan is administered.