There are almost 600,000 U.S. 401(k) plans. These plans collectively cover more than 100 million participants. They have nearly $6 trillion in assets. Two principal laws governing these plans, the Internal Revenue Code (the “Code”) and the Employee Retirement Income Security Act (ERISA), set out a series of rules that are mind-numbingly complex. In or about 2007, a plaintiff class action law firm sued a dozen very large 401(k) plans of name-brand employers generally alleging plan mismanagement. What started as a “trickle” of lawsuits morphed into a torrent in the years that followed, and there is no sign of the trend abating. Plan sponsors have responded by focusing on plan compliance and governance, which includes the establishment of retirement plan fiduciary committees, which tend to be consult-advised and subject to formal, written policies and procedures.
The purpose of the Retirement Committee Field Guide podcast is to educate retirement committee members and their advisors on committee composition, management, training, and best practices. Each month we interview a guest such as a retirement plan advisor or consultant committee member, or academic to provide insight on fiduciary basics, committee governance, emerging best practices, developing law, and related topics.