The Investment Policy Statement is a legal plan document. It needs to be treated accordingly. This means to deliberate it with diligence before adopting it. Even when it is adopted, it must be regularly inspected and revised as needed.
Tag "IPS"
There are many different types of plans, particularly when plan sponsors pick a 3(21) or 3(38) adviser. Which service provider arrangement a plan sponsor chooses impacts how the IPS will be constructed â and how the relevant parties contribute to that draft.
Unlike a generic vendor agreement, the IPS is a formal plan policy document that defines the parameters between the plan and relevant vendors. This is why it can also be a terrible trap.
Whether a plan sponsor decides to adopt a 401k IPS remains an open question. Itâs not a question that should be treated casually. Every plan situation is different. Plan sponsors therefore must conduct a thorough due diligence to determine whatâs best for their plan.
Retirement policy potpourri, New Jersey fiduciary, and the investment gamut.
401k Works, Hidden Fee Bad, and Investor PTSD.
Until communication education becomes generally accepted and standardized, it may be safer to rely on an Annual Education Program rather than an Education Policy Statement.
401k Plan Sponsors often see due diligence as a burden. It needn’t be.
What worked in the past might mislead today. Worse, it might not include everything it needs to include. Find out what’s still useful, what isn’t and what needs to be added.
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