Request a Proposal

The Benefits of Enacting a
Plan Sponsor Philosophy

Overwhelmed by a lengthy to-do list, including the perpetual need to meet a number of ERISA regulatory obligations, plan fiduciaries often lose sight of the foundation for sponsoring a retirement plan: its purpose. Enacting a Plan Sponsor Philosophy is an effective way for committee members to remind themselves of this basic goal.

    BETTER ALIGN YOUR PLAN DESIGN WITH
    YOUR RETIREMENT PLAN'S OBJECTIVES

    While regulatory obligations and industry best practices need to be met and followed, they are the means to achieving a plan’s purpose, not the end.

    Unlike a Committee Charter, which sets the lines of authority, or an Investment Policy Statement, which outlines acceptable actions, a philosophy defines a retirement plan’s purpose, making it a useful reference tool for committees during the decision-making process.

    In this brief report, we explore what exactly a “philosophy” is and how implementing one can help to expedite and improve your committee’s decision-making process, all while better aligning your plan design with your retirement plan’s objectives.