Investment Committee Charter
(Defined Benefit Plan)

Summary

This template is an investment committee charter that a plan sponsor (or an established fiduciary committee) can use as a basis to establish and define the role of an investment committee for a defined benefit plan that is governed by the Employee Retirement Income Security Act (ERISA). This template includes practical guidance, drafting notes and an optional clause. 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 (e.g., the board of directors, for a corporate plan sponsor) or the plan trustee, however 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 independently in accordance with the plan's investment policy statement (as established in accordance with the plan). 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 important plan investment content, see ERISA Retirement Plan Investment 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 ERISA Fiduciary Duties, Investment Committee Issues for Defined Contribution Plans, and Investment Policy Statement (Defined Benefit 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.