401(k) Investment Policy

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There are a number of fiduciary responsibilities associated with managing plan assets. Most important among them include doing so with the care, skill, prudence and diligence of a prudent expert, in addition to diversifying the investments of the plan so as to minimize the risk of large losses. A written Investment Policy Statement (IPS) documents these fiduciary responsibilities and ensures fiduciaries are adhering to them.

Under ERISA, plan trustees are expected to “prudently” manage assets of the plan specifically for the benefit of the plan participants. The ERISA Code and the Department of Labor have established expectations with regard to a prudent process for plan trustees: