Ask the Experts: Defined Contribution Plan Policies
I am looking for a sample policy on current defined contribution plans based on ERISA (Employee Retirement Income Security Act) and Department of Labor requirements.
Answer 1: A defined contribution plan should have a retirement plan or fiduciary committee that oversees the plan and the committee should adopt an operating plan or charter. Most committee charters are specific to the plans they oversee. There is a lot of material on this subject available online, so I would suggest a little research to develop the key points to include in your organization’s specific retirement committee charter.
This question was answered by: Michael Neuman, CPA, FHFMA, senior vice president, finance/CFO, Kennedy-Krieger Children’s Hospital, and a member of HFMA’s Maryland Chapter.
Answer 2: This governance document was recently shared on HFMA’s Forum Pilot platform by Matthew Morgan, vice president of finance, Community Hospital of the Monterey Peninsula. It covers a 403(b) plan.
See related tool: 403(b) Investment Policy Statement
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