Retirement plan committees for 401(k) and 403(b) plans need to operate in the best interest of plan participants, according to Judith Rohr with Retirement Management Services. To that end, how the committee is organized makes a big difference in the outcomes of plan participants.

Committees serve an important role in making decisions for plan participants and their beneficiaries. RMS recommends that each committee member have a defined role on the committee. Organization is the key to keeping committees running smoothly.

It also is important to remember that at least one named person on the committee and in plan documents must serve a fiduciary function. A plan must have at least one fiduciary who has control over the plan’s operation. Plan fiduciaries include the trustee, investment advisors, all individuals exercising discretion in the administration of the plan and all members of a plan’s administrative committee.