Investment Committee Charter
(Defined Contribution Plan)

Summary

This template is an investment committee charter for use by a plan sponsor (or an established committee) to establish and define the role of an investment committee for a defined contribution plan governed by the Employee Retirement Income Security Act (ERISA). This template includes practical guidance, drafting notes, and alternate and optional clauses. Without delegation to a properly established investment committee, or to an employee of the plan sponsor (e.g. the Vice President of the sponsor's Human Resources department), the fiduciary responsibility for prudent investment of plan assets remains with the plan sponsor or trustee, as designated in the plan or trust document. The investment committee can provide guidance to the plan sponsor's board of directors or, by delegation by the board, may operate in accordance with the plan's investment policy (as established in accordance with the plan). For a full listing of key content that can be used by in-house counsel to develop, revise, and implement a company's employee and third-party-related policies, see In-House Company Policies Resource Kit. For a full listing of key content for in-house counsel and corporate secretaries when performing corporate functions, see In-House Corporate Secretary Resource Kit. For a key listing of additional ERISA plan investment content, see ERISA Retirement Plan Investment Resource Kit. For a full listing of key content covering 401(k) and other defined contribution plan compliance, see 401(k) and Other Defined Contribution Plan Compliance Resource Kit. For a board resolution delegating a board's plan governance responsibilities to a committee, see Board Resolutions: Qualified Retirement Plan Committee Appointment and Charter Adoption. For a discussion on an ERISA plan fiduciary's duties, see Investment Committee Issues for Defined Contribution Plans and Investment Policy Statement (Defined Contribution Plan). For a presentation for external or in-house counsel to train an ERISA fiduciary committee, like an investment committee, about their plan responsibilities, see ERISA Fiduciary Committee Training Presentation.