Tending the Flock - Index Funds Advisors

Tending the Flock: Shepherding Catholic Retirement Plans
Additionally, participants must be able to make their own investment
allocation decisions and have access to changing their investment
selections at least once every three months at no more than a
“reasonable” charge to the participant.
Finally, participants must receive sufficient information and
education about the Plan’s investment options so that they can make
informed decisions.
Sample IPS language could look like this:
The defi ned contribution Plan is intended to be maintained as an ERISA 404(c)
Plan, as described in §404(c) of the Employee Retirement Income Security Act
of 1974 (“ERISA”), and Title 29 of the Code of Federal Regulations Section
2550.404c-1. To do so, the general investment philosophy of the defi ned
contribution Plan will be to provide Participants with a choice of broadly
diversifi ed lower-cost funds and blended portfolios that have different risk and
return characteristics that match Participants’ individual risk capacities and
provide them with a corresponding expected investment return.
Further, the defi ned contribution Plan will:
• Provide Participants with a disclosure that the Plan is intended to be a
404(c) Plan within the meaning of ERISA Section 404(c) and that the
Department of Labor regulations thereunder limit the Plan Fiduciaries’
liability with respect to Participant-directed investments under the plan
• Provide communication tools expressed in layman’s terms to Participants
to help them better understand investments and to help them identify their
appropriate asset allocation.
• Provide Participants with Target Date Portfolios comprised of globally diversified
funds, enabling them to invest in accordance with their time horizon and risk
capacity, or to create investment allocations of their own choosing
• Generally allow Participants to change the investment direction of future
deferrals and employer contributions
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