The Fiduciary Committee Checklist: 10 Areas Every Retirement Plan Should Review Each Year
Retirement plan committees have an important responsibility: helping oversee a plan that supports participants while maintaining a sound fiduciary governance process. Effective oversight isn’t about reacting to headlines or making frequent changes—it’s about following a disciplined, well-documented review process throughout the year.
An annual fiduciary committee review can help identify opportunities for improvement, confirm that governance practices remain effective, and help the committee stay focused on its long-term responsibilities. While every retirement plan is unique, there are several key areas that most committees should revisit each year.
1. Review the Investment Policy Statement (IPS), If Applicable
The Investment Policy Statement (IPS) serves as the roadmap for the committee’s investment oversight process. It establishes guidelines for investment selection, monitoring, performance evaluation, and governance.
Annual IPS reviews help determine whether the document still reflects:
- Committee responsibilities
- Investment objectives
- Monitoring procedures
- Organizational goals
- Current governance practices
A well-maintained IPS promotes consistency and helps committees make decisions within an established framework.
Tip: Add an annual IPS review to your committee calendar rather than waiting until a major change occurs.
2. Evaluate Investment Lineup Performance
Investment monitoring should be an ongoing process rather than a reaction to short-term market performance.
Annual reviews may include:
- Performance relative to stated benchmarks
- Risk characteristics
- Expense ratios
- Manager consistency
- Watch list status
- Alignment with the IPS
The objective is to evaluate investments using a consistent process rather than recent market headlines.
Tip: Focus discussions on long-term objectives and documented monitoring criteria.
3. Review Plan Fees and Expenses
One of the committee’s ongoing responsibilities is understanding plan fees and evaluating whether they remain reasonable for the services provided.
Areas to review include:
- Investment expenses
- Recordkeeping fees
- Advisory fees
- Administrative costs
- Fee benchmarking
Fee discussions should focus on value, transparency, and participant outcomes—not simply selecting the lowest-cost option.
Tip: Periodically benchmark fees and document the committee’s review.
4. Assess Service Providers
Retirement plans rely on multiple service providers, including advisors, recordkeepers, custodians, and third-party administrators.
Annual reviews provide an opportunity to evaluate:
- Service quality
- Responsiveness
- Reporting capabilities
- Technology
- Participant support
- Overall relationship
Strong service providers contribute to an efficient retirement plan experience for both committees and participants.
Tip: Ask whether your current providers continue to meet the evolving needs of your organization and employees.
5. Evaluate Participant Engagement
A well-designed retirement plan can be more effective when employees understand the benefit and how to use it.
Review:
- Participation rates
- Deferral rates
- Enrollment trends
- Financial wellness initiatives
- Education attendance
- Retirement readiness metrics
Understanding participant behavior can help identify opportunities to improve engagement and education.
Tip: Review participant education efforts at least annually and look for ways to increase employee participation.
6. Confirm Fiduciary Governance Practices
Strong governance depends on a consistent process.
Annual reviews should include:
- Committee roles
- Meeting frequency
- Decision documentation
- Governance calendar
- Committee training
- Fiduciary education
Well-defined governance practices help committees remain organized and proactive.
Tip: Conduct annual fiduciary education to keep committee members informed of current best practices.
7. Review Regulatory and Legislative Updates
The retirement plan landscape continues to evolve as new laws, regulations, and industry guidance emerge.
Committees should periodically review:
- Legislative updates
- Regulatory developments
- Plan document changes
- Required notices
- Compliance deadlines
Staying informed helps committees adapt as requirements change.
Tip: Include regulatory updates as a standing agenda item during committee meetings.
8. Examine Cybersecurity and Data Protection
Retirement plans hold sensitive participant information, making cybersecurity an increasingly important governance consideration.
Annual discussions should include:
- Data security practices
- Recordkeeper cybersecurity protocols
- Multi-factor authentication
- Incident response procedures
- Vendor security standards
Protecting participant information is an important part of overall plan oversight.
Tip: Ask service providers about their cybersecurity practices during annual reviews.
9. Review Committee Documentation
Good governance includes maintaining organized records.
Committee documentation may include:
- Meeting minutes
- Investment reports
- IPS reviews
- Fee evaluations
- Committee decisions
- Educational sessions
Documentation demonstrates a thoughtful and consistent decision-making process.
Tip: Review committee records annually to ensure documentation is complete and organized.
10. Set Goals for the Coming Year
Annual reviews shouldn’t focus only on the past—they should also prepare the committee for the future.
Consider establishing objectives such as:
- Improving participant engagement
- Updating governance procedures
- Enhancing committee education
- Reviewing investment options
- Evaluating service providers
- Strengthening documentation
Forward-looking planning helps committees remain proactive rather than reactive.
Tip: End each annual review by identifying two or three measurable committee priorities for the year ahead.
Final Thoughts
An annual fiduciary review is about much more than checking compliance boxes. It’s an opportunity to strengthen governance, improve committee effectiveness, and reaffirm a disciplined oversight process that supports plan participants over the long term.
Retirement plan committees that regularly review their Investment Policy Statement, monitor investments, evaluate service providers, document decisions, and invest in ongoing education are better positioned to fulfill their fiduciary responsibilities with confidence.
The strongest committees don’t wait for problems to arise—they build a consistent process that helps them make thoughtful, informed decisions year after year.
Is your retirement plan committee reviewing all the areas that matter most?
Redwood Wealth Management Group partners with retirement plan committees, fiduciaries, and employers to provide governance support, fiduciary education, investment oversight, and committee best practices. If you’d like an independent review of your committee’s governance process, we’re here to help.
Redwood Wealth Management Group is affiliated with Almanack Investment Partners, LLC (“Almanack”), an SEC-registered investment adviser. Investment advisory services are offered through Almanack. This content is for informational purposes only and should not be construed as investment, tax, or legal advice. For additional information about our services, please visit https://redwoodwmg.com/disclosures/
