Most plans use the Pension Plan Committee – PSCA
Most plan sponsors have at least one retirement plan committee of five to ten members, according to a new poll released Thursday by the Plan Sponsor Council of America.
More than 3 in 5 sponsors (63.9%) have a retirement plan committee and 19% have two, the survey found.
Sponsors were most likely to set up a committee to manage retirement benefits, at 79.3%. They are also likely to have a planned investments committee set up at 67.6%. The report found that some plans have a committee for both functions. Few sponsors (5.8%) report having committees for company stocks.
More than three quarters of plan sponsors (78.4%) have documents formally establishing their plan committees, a feature that is particularly common among plan sponsors with more than 5,000 participants (93.5%).
“Regardless of the committee structure chosen, a documented prudent process remains best practice – and litigation – for retirement trustees,” said Nevin Adams, chief content officer and research director for PSCA’s American Retirement Association, in a press release.
More than 6 in 10 sponsors said their retirement plan administration and investment committees have five to ten members and meet quarterly. Almost half (49.7%) always have a lawyer present at the meetings.
The survey carried out in April is based on the responses of 255 plan sponsors from various industries and plan sizes.