Upon first blush, to the extent an employee from the general populace can and wishes to make a contribution as a committee member, there seems to be no reason why they shouldn’t participate on the committee. In practice, most committees consist of executives from finance (preferably the CFO), benefits and human resources. Due to the potential personal liability exposure, if there is interest from other lay people who wish to represent the vote of the participant base, they are best served participating as a non-voting member with no discretionary capabilities. This type of person should be identified and documented as a non-voting member assuming there is no intent to take on fiduciary status and the potential liability attached to all retirement committee members.
Millennial participants (those born between 1981 and 1997) are a distinct cohort that plan sponsors and their advisors must consider when designing fund menus. The following article discusses investment lineups, communication, and education considerations for younger workers. Please view here.
Plan sponsors increasingly recognize the benefits of allowing retired participants to leave their assets in the plan. However, participants passively enrolled in the plan's qualified default investment alternative (QDIA) may not continue to be appropriately invested after retirement. Read further for a discussion of these considerations here.
As more and more participants are accustomed to receiving information electronically, it is tempting to plan sponsors to dispense with paper altogether. However, not all communications can be provided in this manner. This article reviews the types of participant communications that are permitted by ERISA to be sent electronically: Participant Notices.