How prudent plans build and monitor an investment menu — the IPS, 404(c) protection, QDIAs, adviser models, and review cadence.
An IPS is the written roadmap for selecting, monitoring, and replacing plan investments — criteria, benchmarks, and review procedures. ERISA doesn't literally require one, but it's the standard evidence of a prudent investment process, and courts and the DOL expect to see it followed.
Read the full answerERISA 404(c) shields fiduciaries from liability for participants' own investment choices — but only when the plan offers a broad range of options, delivers required disclosures, and lets participants exercise real control. Fiduciaries always remain responsible for prudently selecting and monitoring the menu itself.
Read the full answerA qualified default investment alternative is where a plan invests contributions for participants who never make an election — typically a target-date fund, balanced fund, or managed account. Using a QDIA with the required annual notice gives fiduciaries safe-harbor protection for defaulted investments.
Read the full answerA 3(21) adviser is a co-fiduciary who recommends investments while the committee retains decision authority and responsibility. A 3(38) investment manager takes written discretion to select and replace investments, shifting that responsibility to the manager — the committee then monitors the manager.
Read the full answerReview investment performance against the IPS quarterly (at minimum annually), and benchmark plan fees — investments, recordkeeping, and advice — at least annually, with periodic market tests such as RFPs every three to five years. Documented reviews are the backbone of fee-litigation defense.
Read the full answerPut these answers to work
Fiduciary In A Box walks your team through every one of these requirements step by step — documenting decisions, organizing files, and keeping your plan compliant year-round.
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